Nifty Metal outperforms, index tops 2.5% with heavyweight stocks rallying the most; JSPL, Tata Steel, JSW Steel, Coal India top bulls

Nifty Metal has climbed by nearly 3% so far today with the majority of stocks in a buying spree.

January 13, 2022 1:27 IST | India Infoline News Service
Despite volatile markets, the metal stocks outperformed and were in a stellar rally on Thursday as base metal prices spike and fall in dollar currency. Investors also place their bets ahead of metal companies December 2021 (Q3FY22) quarterly results scheduled for later in the month. Nifty Metal has climbed by nearly 3% so far today with the majority of stocks in a buying spree.

At around 1.12 pm, Nifty Metal was trading at 5,828.55 up by 143.55 points or 2.53%. The index has touched an intraday high of 5,852.30.

On the index, 13 scrips advanced and 2 scrips declined.

JSPL and Tata Steel were the top bulls soaring by 5.2% and 4.8%. JSW Steel and Coal India surged by 3.7% and 3.4%.

Stocks like SAIL, NMDC and Hindustan Copper advanced more than 2% each. Vedanta zoomed 1.7%, while APL Apollo and NALCO jumped over 1% each.

Hindalco and Adani Enterprises advanced marginally, while Hindustan Zinc traded flat.

On the contrary, Welspun Corp was the top bear plunging over 1%, while Ratnamani dipped 0.5%.

The upside in Indian metal stocks is despite experts downgrading their target price in major steel companies citing contraction in alloy prices and high raw material costs. Analysts optimism in Indian metals dimmed as weak macro and demand fears in China weigh on metal prices. China has scrapped import tariff on lead battery scrap starting this month for diversifying battery raw-material procurement and cushion secondary lead production cost pressures.

Key Q3 to watch out so far this month would be Tata Steel-led Tata Steel Long Products that will announce its earnings on January 17, while JSW Steel is scheduled on January 21, 2022.

On the global front, base metal prices traded higher with copper prices in China reaching an over two-month high aided by worries about supply tightening amidst persistent low inventories. Also, the dollar index slipped against a basket of currencies as investors reacted to US inflation data which is at a 40-year high. 

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