India guar futures tad higher on firm spot

MUMBAI, Oct 7 (Reuters) - Indian guar futures were trading slightly higher in afternoon trade on Tuesday as spot buying and short-covering offset worries on mounting warehouse stocks, analysts said.

Arrivals are increasing but spot demand is also strong, said an analyst with a Hyderabad-based brokerage.

Spot prices rose by 8 rupees to 1,642 rupees per 100 kg in Bikaner, a major trading centre. Arrivals were about 10,000 bags of 100 kg each by afternoon across major centres, a trader said.

New crop arrivals have started in Haryana and north Rajasthan, and are likely to rise further this week.

NCDEX-accredited warehouses stocks fell to 49,668 tonnes as on Oct. 6 from 49,828 tonnes in Oct.4, exchange data shows.

At 2:40 p.m, November contract NGUX8 on the National Commodity and Derivatives Exchange was at 1,685 rupees per 100 kg, up 0.18 percent.

(Reporting by Sourav Mishra; Editing by Ramya Venugopal)