Zinc futures rallied in the domestic market on Thursday as investors and speculators booked fresh positions in the industrial metal amid a pickup in physical demand for Zinc in the domestic spot market.
Further, reduced odds of September Federal Reserve monetary tightening supported the demand outlook for Zinc, spurring buying in the industrial metal. While the Fed stressed that conditions which warrant rate tightening are approaching, policymakers are seeking more evidence of a pickup in economic growth and labour markets and need more confidence that inflation is moving towards the required goal.
However, worries that a steep China stock and currency sell-off may spread to other parts of the world's second biggest economy clouding the demand prospects for Zinc, trimming gains in the base metal.
At the MCX, Zinc futures for August 2015 contract is trading at Rs per 117.05 per kg, up by 0.26 per cent after opening at Rs 116.80, against the previous closing price of Rs 116.75. It touched the intra-day high of Rs 117.60. (At 12:17 PM).