Tata Steel, Vedanta In Focus As Metal Stocks Surge — Here’s What’s Driving The Rally
The NSE Nifty Metal index advanced 1.70% to 10,721.30. The index was trading 1.52% higher at 10,702.55 as of 10:30 a.m.
The NSE Nifty Metal index advanced as Tata Steel Ltd. Vedanta Ltd., and Hindalco Industries Ltd. share prices led. Most stocks in the NSE Nifty Metal index were trading in green on improved sentiment for these stocks because of multiple positive triggers.
Tata Steel Ltd. Hindalco Industries Ltd., and Hindustan Copper Ltd. reported good performance for the July–September. Tata Steel reported that its net profit advanced 49.3% on the quarter to Rs 3,102 crore versus Rs 2,078 crore.
Hindalco Industries Ltd.'s net profit advanced 18.4% on the quarter in July–September to Rs 4,741 crore compared to Rs 4,004 crore in the preceding quarter.
Hindustan Copper Ltd. reported that its net profit advanced 83% on the year during second quarter to Rs 186 crore from Rs 102 crore.
Silver prices are rising in the international markets as the US Government shutdown comes to an end, which is a positive trigger for metal stocks.
On the domestic front, the Government of India has imposed anti-dumping duty on some Vietnamese steel. Moreover, the Cabinet has taken steps to boost critical mineral production.
The National Company Law Tribunal reserved order on Vedanta's demerger case.
The NSE Nifty Metal index advanced 1.70% to 10,721.30. The index was trading 1.52% higher at 10,702.55 as of 10:30 a.m. compared to 0.14% advance in the NSE Nifty 50 index.
The index has gained 21.08% in 12 months, and 23.70% on a year-to-date basis. The relatice strength index of the index is 62.79.
The market-cap of metal stocks advanced Rs 30,070 crore to 18.86 lakh crore as of 10:32 a.m.
In terms of share price gains, Hindustan Zinc Ltd., Vedanta Ltd., Tata Steel Ltd., and Hindustan Copper Ltd. were among the top gainers in the NSE Nifty Metal Index.
