India's copper futures rose on Thursday following global leads, but a firmer rupee kept the upside limited, analysts said.
Three-month LME copper firmed up on Thursday, underpinned by the first big fall in inventories since October, but analysts cautioned that a weak demand outlook would keep a leash on any rally. "Copper is holding up and would wait for further cues," said Tejas Seth, an analyst with SMC Global in Delhi, adding copper may trade in the range of 156-164 rupees for the day.
The Indian rupee rose as exporters sold dollars on expectations of a recovery in the local unit after a sharp sell-off while some long dollar unwinding in the non-deliverable forwards also helped. See [ID:nBOM416679]
The benchmark copper February contract MCCG9 was 1.98 percent higher at 161.95 rupees per kg at 3:39 p.m., after rising from a low of 158.7 rupees.
Analysts said traders would await U.S. weekly jobless claims slated later in the day to gauge direction in the base metals complex. See [ID:nN18605560]
In the short-term, analysts said copper would continue to move sideways with a negative bias on weak demand and rising inventory levels.
"Carrying forwad any long positions would be difficult (in copper) as weakness is suppose to continue," said Debjyoti Chatterjee, an associate vice-president with MAPE ADMISI in Mumbai.
At 3:39 p.m., February zinc MZIG9 was 0.82 percent higher at 55.55 rupees per kg, while February lead MLDG9 was 0.85 percent higher at 53.70 rupees per kg.
