Base metals futures hit upper circuit on global cues

The base metals pack rebounded to hit upper circuits in futures trading today on short-covering by speculators, driven by firming global trends. All the base metals, led by copper were trading in the positive zone, with gains of up to six per cent.

Lead gained the most among base metals, with its December contract climbing 5.99 per cent to hit second upper circuit at Rs 51.35 per kg on the on the Multi Commodity Exchange, clocking business turnover of 990 lots.

January contract for lead also gained 5.84 per cent to Rs 52.60 per kg in a turnover of 69 lots, while February contract moved up 4.02 per cent to Rs 453.05 per kg, clocking business turnover of one lot.

Market analysts described recovery in base metal prices as a pullback as international markets were higher in early traded. "Covering-up of short positions by speculators and firming trend in Asian equity markets, boosted base metals and other commodity prices across the board," said Baij Nath Patel, an analyst.

Copper, for the most-active April contract climbed 3.99 per cent to hit upper circuit at Rs 170.75 per kg, in a turnover of 813 lots, while far-month February contract shot up 3.77 per cent to Rs 167.75 per kg, clocking 8,104 lots.

At the London Metal Exchange, copper rose by 2.8 per cent to 3,135 dollar per tonne after trading below the psychological 3,000 dollar per tonne barrier in the previous session, for the first time since May 2005, after bleak US employment data reinforced slowdown concerns.

Taking cue from other base metals, nickel for the most-active December contract shot up 5.99 per cent to hit upper circuit at Rs 484.60 per kg in a turnover of 1,341 lots, while January contract rose 5.90 per cent to Rs 499 per kg with a business turnover of 98 lots.

information from economictimes.indiatimes.com