Heavy selling pressure was seen in Nickel on Tuesday as the fears of monetary tightening haunted the Base metals pack. Crude trading above $ 100 per barrel has ignited the talks of rising interest rates and tight monetary policy. In Europe, the ECB chairman has earlier said that the interest rate rise was expected soon, while China is already on a spree to curb down inflation. The People's Bank of China raised reserve requirements twice this year and increased lending and deposit rate.
MCX Nickel March expiry contract is seen trading at Rs 1198.8 per kg, down Rs 43. The prices were as high as Rs 1232 per kg from where they derailed by 3.5%. LME Nickel inventories registered a marginal fall of 282 tonnes to 129102 tonnes.
