Zinc futures surged by more than 1.8 per cent 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.
The gains in Zinc came even as China's equity rout worsened with the country's benchmark index, the Shanghai Composite tumbling by over 3 per cent, possibly signaling deep rooted problems plaguing the world's second biggest economy.
At the MCX, Zinc futures for August 2015 contract closed at Rs per 118.90 1 kg, up by 1.84 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 120.15.