Metal stocks record sharp rally as copper price hit near decade high; Hindustan Copper jumps 7%, Hindalco, JSPL shines

Almost all metal company stocks are performing higher since the start of this week led by demand lift which has given a sudden spike to base metal prices.

Feb 23, 2021 01:02 IST India Infoline News Service

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Metal stocks continued their rising spree on Tuesday with copper stocks witnessing massive buying sentiments. Almost all metal company stocks are performing higher since the start of this week led by demand lift which has given a sudden spike to base metal prices.

At around 1.34 pm, the Nifty Metal index was trading at 3,713.75 up 104.65 points or 2.90%. The index has touched a new record high of 3,715.

Three-month copper on the London Metal Exchange skyrocketed to $9,187 a tonne on Monday, which is the highest level since September 2011. The performance was driven on the back of demand pick-up amid the Covid-19 pandemic and a weaker dollar. Also, Nickel zoomed $20,000 a ton.

The spike in metal base prices, notably, came after China's Lunar New Year as factory production was more buoyant than expected. Investors cheer metal stocks on hopes that demand will exceed near-term supply.

On the Nifty Metal index, Hindustan Copper took lead by surging over 7%. However, the stock has hit a new all-time high of Rs107.90 per piece in early deals.

Hindalco jumped 4.5%, while JSPL climbed by 4.4%. The two stocks were also among top gainers. Notably, JSPL has also touched a new all-time high of Rs337.30 per piece.

Going forward, SAIL and Tata Steel also recorded a 4% surge each in stock price on the index.

Stocks like NMDC, MOIL and NALCO zoomed over 3% each. APL Apollo jumped by 2%. Midhani and JSW Steel also climbed by 1.7% and 1.2% respectively.

Meanwhile, Coal India and Welspun Corp traded marginally up.

However, Ratnamani was the top underperformer plunging by 1% followed by a marginal drop from Hindustan Zinc. 

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