Nickel rises over 1% on spot demand

However, weakness in the overseas market capped gains

Amid increased demand from alloy- makers in the spot market, nickel prices rose over 1% to Rs 896.20 per kg in futures trade today.

However, weakness in metal in overseas market, capped the gains here.

At the MCX, nickel for delivery in June traded higher by Rs 9.70, or 1.09%, to Rs 896.20 per kg, with a business turnover of 8,773 lots.

The July contract edged higher by Rs 9.50, or 1.06%, to Rs 905.50 per kg in 472 lots.

Analysts said increased demand from alloy-makers in the spot market mainly supported the upside in nickel futures prices here but weakness in metal at the London Metal Exchange (LME), restricted the gains.

Globally, nickel dropped 0.4% to $16,042 a tonne at the LME.