Nickel up on spot demand

Weakness in overseas market caps gains

Nickel prices rose by Rs 6 to Rs 968.50 per kg in futures market today as speculators enlarged their positions, driven by rising demand from alloy-makers.

However, the metal's weakness at the London Metal Exchange restricted the gains. Metals on the LME declined after Standard & Poor's downgraded debt-ridden Spain by two notches from A to BBB+ citing the worsening debt crisis as the main reason.

At the MCX, nickel for delivery in May rose by Rs 6, or 0.62%, to Rs 968.50 per kg, with a business turnover of 1,216 lots.

The April contract moved up by Rs 6.70, or 0.60%, to Rs 958.60 per kg in 3,569 lots.

Analysts said besides a firming trend in spot markets on increased demand from alloy-makers, covering-up of pending short positions also helped nickel futures to trade higher today but weakness in base metals at the LME, limited gains.

On the LME, nickel contract lost 0.2% to $18,160 a tonne.