Nifty Metal continues to hit new record highs, index gains 5%; NALCO, NMDC, SAIL, MOIL climb 8-13%

Corporate earnings and demand rebound expectations also lifted the sector on Indian stock exchanges.

May 07, 2021 02:05 IST India Infoline News Service

Metal company stocks continued their rising spree as metal prices touch record highs on hopes of the global economic recovery from the rapid surge in the Covid-19 pandemic. Base metals were higher in the commodities markets. Corporate earnings and demand rebound expectations also lifted the sector on Indian stock exchanges. Nifty Metal outperformed not only benchmark Nifty 50 but also other sectoral indices on Friday.

At around 2.48 pm, Nifty Metal was trading at 5,362.05 higher by 267.05 points or 5.24%. The index has touched a new all-time high of 5,371.30.

NALCO was the top gainer soaring by 13.13% followed by NMDC advancing by 9.4%. SAIL and MOIL followed strengthening by more than 8%  each. Tata Steel and Vedanta also surged by 7.4% and 6.7% respectively.

Hindustan Zinc and JSPL climbed by 5.8% and 5.09% respectively. While Hindalco and JSW Steel jumped more than 4% each.

Coal India and Welspun Corp gained by 1.9% each, while Adani Enterprises was higher by 1.5%.

On the downside, APL Apollo was lower by 2.3% followed by Ratnamani was down 0.3%.

Metal is currently in a sharp rally which has driven raw materials from iron ore to copper at a multi-year high. Stimulus measures and Covid-19 vaccination drive are tapping prospects for the resurgence in demand going forward.

At the London Metal Exchange, Copper has risen to as much as $10,246.50. Furthermore, steel prices are booming in Asia and North America. Hong Kong base metals have also recorded double-digit growth this year. 

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