India copper futures extended gains for a second day on Friday due to an inventory dip on the London Metal Exchange (LME) and on hopes that strength in equity markets may signal economic recovery and thereby demand. Copper stocks in warehouses monitored by LME fell by 6,700 tonnes to 497,625 tonnes on Friday. A firm rupee on Friday limited the upside, analysts added. A strong rupee makes the dollar-quoted asset cheaper. The Indian rupee extended gains on Friday afternoon as a 4 percent rise in the domestic share market helped ease outflow worries with the dollar's drop against some Asian currencies also boosting the local unit. Analysts see further strength in the red metal on the back of Chinese buying. The strength is also on the back of anticipation of Chinese buying, said Kunal Shah, an analyst with Nirmal Bang Commodities in Mumbai. Investors were comforted by comments from Chinese Premier Wen Jiabao, who said 595 billion yuan had been allocated in this year's budget for stimulus moves and the country could issue new measures if needed. [ID:nPEK148770]. The benchmark April contract MCCJ9 was 1.36 percent higher at 190.5 rupees per kg at 3:37 p.m., after gaining 0.9 percent in the previous session. "We are bullish in copper till 195," said Shah. "It (copper) would trade in the range of 187-194.5," said Navneet Damani, an analyst with Anand Rathi Commodities in Mumbai. At 3:37 p.m., March zinc MZIH9 was 1.04 percent higher at 63.30 rupees per kg, March lead MLDH9 was 0.70 percent higher at 64.45 rupees per kg.

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