Zinc up by 1.4% on overseas cues

Better domestic demand also helped prices

Zinc futures traded 1.38% higher as participants built up positions amid a rising trend in base metals overseas and better domestic demand.

At Multi Commodity Exchange, zinc for delivery in March was up by Rs 1.60, or 1.38%, to Rs 117.55 per kg in 32 lots.

The metal for delivery in February also rose Rs 1.50, or 1.30%, to Rs 116.90 per kg, with a business turnover of 1,009 lots.

Analysts said besides a firming trend at the domestic spot market, strength in the base metals pack in global market on speculation mining-output cuts will tighten supplies, drove the upside in zinc prices at futures trade.

Besides, weakness in the dollar made commodities priced in the US currency more attractive to investors, weighed on prices.

Globally, zinc for delivery in April jumped as much as 3.5% to 13,960 yuan ($2,122) per tonne on the Shanghai Futures Exchange, the highest for the most active contract since October.