Zinc futures traded higher by 0.29 per cent to Rs 122.70 per kg today as traders enlarged positions following uptick in demand in the spot markets coupled with a firm trend at the London Metal Exchange.
At the Multi Commodity Exchange, zinc for delivery in current month traded higher by 35 paise, or 0.29 per cent to Rs 122.70 per kg in a business turnover of 4,734 lots.
Likewise, the metal for delivery in May edged up by 35 paise, or 0.28 per cent to Rs 123.35 per kg in 210 lots.
Market analysts attributed the rise in zinc futures to a firm trend at spot market on pick up in demand from consuming industries and a firming trend on shrinking inventories.
Meanwhile, zinc inventories in warehouses tracked by the LME declined the most in more than eight years, singalling a potential improvement in demand.
At the LME, zinc for delivery in three months climbed 4.1 per cent to USD 1,833 per tonne.
