Nifty Metal near record highs, index surges 2%; Hindalco, JSPL, Hindustan Zinc top gainers

Corporate earnings, demand recovery and higher steel prices lift the performance in this sector.

May 06, 2021 02:05 IST India Infoline News Service

Bull Running Up
Nifty Metal continues to shine even on Thursday led by broad-based buying in metal companies. The index has outperformed benchmark Nifty 50 and other sectoral indices. Corporate earnings, demand recovery and higher steel prices lift the performance in this sector.

At around 2.45 pm, Nifty Metal was trading at 5,088.15 up by 118 points or 2.37%. The index has touched a new record high of 5,118.20 in early deals.

The index has been on a rising spree since February this year as demand picked up and steel prices witnessed an upside.

Metal company stocks have been in a significant run since early February with steel prices picking up momentum. A host of factors such as improvement in the commodity cycle, rising steel prices, and strong demand has played a major role in the bull run of this sector. The sector even defied the second wave of the Covid-19 pandemic in the country. Corporate earnings season also had its share of swaying the sentiments.

In the last few hours, India recorded 4,12,262 new Covid-19 cases with 3,29,113 discharges and 3,980 deaths.

On Nifty Metal, Hindalco was the top gainer soaring by 4.8% followed by JSPL and Hindustan Zinc surging by 3.3% and 3.09% respectively.

Tata Steel followed by advancing 2.8%. The company has announced its financial performance for the March 2021 (Q4FY21) quarter, under which it recorded the highest ever quarterly crude steel production of 4.75 mn tons, registered a 3%QoQ growth in 4QFY21. FY21 production stood at 16.92 mn tons. Consolidated PAT was at Rs7,162cr in Q4FY21.

Further, NALCO gained 2.6%, while Welspun Corp and Adani Enterprises jumped by 2.5% and 2.06% respectively.

Stocks like Vedanta, SAIL, NMDC and JSW Steel climbed between 1.5-2%. Coal India surged 1.2%, while MOIL zoomed by 0.7%.

On the contrary, APL Apollo and Ratnamani were top laggards slipping by 0.7% and 0.3% respectively. 

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