Monday's Bull: Nifty Metal outperforms by 2%; SAIL, Adani Enterprises, NALCO surge 6-9%

Record high metal prices and improvement in demand has boosted metal company stocks in Indian markets.

May 03, 2021 02:05 IST India Infoline News Service

Metal stocks were in no mood to lose their shine despite fragile markets on Monday. The sector emerged as top bulls in today's session lifting benchmarks Sensex and Nifty in the process. The broader markets have been volatile tracking weak global cues as investors gauged inflation risks as economic activity ramps up. However, record high metal prices and improvement in demand has boosted metal company stocks in Indian markets. Corporate earnings also stay in focus.

At around 2.34 pm, Nifty Metal was trading at 4,965.60 higher by 117.65 points or 2.43%. The index has touched a new all-time high of 4,967.50 in early deals.

SAIL was the top gainer on the index surging by nearly 9% followed by Adani Enterprises and NALCO soaring nearly 8% and 6% respectively.

Tata Steel and Welspun Corp jumped nearly 3%, while NMDC, APL Apollo and JSPL climbed over 2% each.

MOIL zoomed by 1.6%, whereas Hindalco and JSW Steel were higher by 1.5% each. Ratnamani jumped by 1.2%. Vedanta advanced marginally.

On the contrary, Hindustan Zinc was the top underperformer slipping by nearly 2% followed by Coal India plunging nearly 1%.

China's announcement for removal of VAT rebates on exports of 146 steel products from May 01, 2021. The VAT rebate of 13% of the VAT charged on exports on products such as hot-rolled coil, wire rod and rebar no longer applies from May 01. Also, products like cold rolled steel sheet, hot-dip galvanized sheet and narrow strip were in the list of products where the rebate is eliminated from this month.

Last week, copper prices at the London Metal Exchange clocked $10,000 a metric ton for the first time since 2011.

Furthermore, China's steel exports increased 16% YoY to 7.5 million metric tonnes in March 2021, from 6.48 mnt in the same month a year ago. Also, the production grew by 19% to 94.02mnt in March 2021 as against 78.98mnt in March 2020.

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