Nifty Metal shines despite weakness in broader markets; Vedanta slumps 3% post Q1 earnings

MOIL, NMDC and SAIL are up marginally on the metal index. However, selling seen in Vedanta, Adani Ent, Coal India and Hindustan Zinc slipped over 3-1%.

Jul 27, 2021 02:07 IST India Infoline News Service

The Nifty Metal index shines in an otherwise weak market on Tuesday's trade. The index trading higher at 5,442.45 levels, up 1% in the afternoon session, had opened at 5,432.55 and touched  a high and low of 5,499.65 and 5,405.55 respectively.

Jindal Steel remained among top gainer, as it gains over 4.14%. The company on Sunday has announced that it will launch Transparent Competitive Bidding Process for JPL Divestment. It has received revised bid from Worldone for Equity Value of Rs7401cr.

APL Apollo, Hindalco, NALCO and Tata Steel zoomed in the range of 4-2%, respectively. JSW Steel and Ratnamani are up 1% each. MOIL, NMDC and SAIL are up marginally on the metal index. However, selling seen in Vedanta, Adani Ent, Coal India and Hindustan Zinc slipped over 3-1%.

Vedanta reported a consolidated net profit soared 247% to Rs5,282cr on a 79.2% jump in net sales to Rs28,105cr in Q1 June 2021 (Q1 FY22) over Q1 June 2020 (Q1 FY21). However, the stock is trading lower.

Investors are looking past concerns over the resurgent coronavirus on bets that miners reporting earnings this week will highlight drivers such as renewable energy and recovering economies. Demand is climbing in the stainless-steel industry, which accounts for about 70% of nickel end-use.

Copper prices have been advancing after China revealed that will release fewer metals reserves than expected. China will sell another 30,000 tonnes of copper, 90,000 tonnes of aluminium, and 50,000 tonnes of zinc at auction from its state reserves on July 29, as per media reports.

Benchmark copper on the London Metal Exchange was up 0.9% at $9,604.50 per tonne in official trading, after touching its highest since June 16 at $9,665 per tonne.

Meanwhile, BSE Sensex was trading at 52,557.95 down 294.32 points or 0.56% and Nifty50 at 15,734.70 down 89.75 points or 0.57%.

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