Metal Stocks Trade Higher, Extend gain, Nalco soars 7% Metal stocks were trading higher in the afternoon trade on Friday on firm global cues. Amidst optimism that demand will accelerate, sentiments improved after a report displayed orders for business equipment hiked in the US, strengthening the outlook for the metal sector. Among the ten components in the BSE Metal index, Nalco was trading close to 7 per cent up at Rs.56.55, followed by JSW Steel - up 2.49 per cent, Tata Steel - up 2.02 per cent and NMDC - 1.59 per cent. Other metal stocks such as SAIL, Coal India and Jindal Steel were up 1.02 per cent, 1.15 per cent and 1.54 per cent respectively. The BSE Metal index was trading 1.08 per cent higher at 10,480 in afternoon trade. However, those of Vedanta, Hindustan Zinc and Hindalco were seen down 0.11 per cent, 0.29 per cent and 0.29 per cent, respectively. Equity benchmark BSE Sensex was trading 1.14 per cent or 294.43 points, higher at 26,154. According to a Press Trust of India (PTI) report, increasing demand from the consumer industries on the domestic spot market are backing metal prices. On a year-to-date basis, Vedanta share price has surged the most at 142 per cent till 24th November. They were followed by Hindalco share Price - up 112.67 per cent, Hindustan Zinc share price - up 83.78 per cent, JSW Steel share price - up 57.18 per cent and Tata Steel share price - up 55 per cent. The BSE Metal index has surged 39.25 per cent to 10,368 as of 28th November from 7,445 on 1st January.
The China Effect: Commodity prices have witnessed a reversal in trend especially all the industrial commodities which werenâ€™t doing well for the last few years after the Chinese economy began cooling down and several metal producers began cutting production of closing mines. According to some analysts, latest Chinese annual growth, services activity and manufacturing activity have shown signs of stabilisation, and estimates of increase in global demand for the metal especially in the US after freshly elected President Donald Trump stated that he will boost the infrastructure spending that will help cushion sharp negative movement in the price of base metals. Company
NALCO VEDANTA HINDUSTAN ZINC HINDALCO NMDC TATA STEEL
56.3 227.1 275.25 181.85 123.95 411.1
50.2 204.2 249.55 165.5 113.95 385.1
12.15 11.21 10.3 9.88 8.78 6.75
LMEX, a gauge of 6 metals traded on the LME - London Metal Exchange has rallied 6.8 per cent in the past 4 trading sessions and closed at 2,826 on Thursday, its highest level since the month of May 2015.
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Article Written by Salman Hashmi