On NSE, the Nifty Metal index has traded with more than 1% upside led by broad-based buying, especially in heavyweight stocks.
Broadly, metal prices in the commodity markets are reacting to China's pledge to step up monitoring of commodity prices and further strengthen supervision of spot and futures markets. This decision comes after China's inflation hit its highest in more than 12 years. So far, this year, copper prices in the London Metal Exchange have climbed by 28%, while at the Shanghai Future Exchange the prices have surged by 21%.
Last month, copper at both exchanges were at new record levels. Additionally, investors also keenly await U.S. inflation data scheduled for later today that is expected to give some clarity on Federal Reserve’s position on tapering monetary stimulus. That is expected to dampen demand for metals.
Further, the world's third-biggest refined tin maker, Malaysia Smelting Corporation Bhd, announced force majeure on its deliveries to customers as Covid-19 takes a toll on productions.
At around 1.10 PM, Nifty Metal was trading at 5,259.90 up by 50.45 points or 0.97%. The index has touched an intraday high and low of 5,306.60 and 5,244.70 respectively.
APL Apollo was the top gainer on Nifty Metal soaring by 2.3%. While SAIL and JSW Steel followed with nearly 2% upside each. MOIL jumped by 1.5%.
Stocks like Ratnamani, NALCO, JSPL and Tata Steel jumped by more than 1% each. Hindalco, Vedanta, Welspun Corp and Adani Enterprises climbed between 0.5-1%. Coal India and Hindustan Zinc were marginally up.
On the contrary, NMDC is the top laggard, however, on a subdued level.