Nifty Metal surges over 1% amid major corporate earnings; NMDC, Vedanta led the pack

The index has touched an intraday high of 5,006.65.

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

Metal stocks were trading on a bullish note during Wednesday's session amid major corporate results. Also, monthly production data further lifted Nifty Metal. The index has been on a rising spree since February this year as demand picked up and steel prices witnessed an upside.

At around 2.46 pm, Nifty Metal was trading at 4,973 up by 51.35 points or 1.04%. The index has touched an intraday high of 5,006.65.

NMDC led the pack surging by over 6.3% followed by Vedanta soaring 3.07%. Stocks like SAIL, Hindalco and Welspun Corp climbed between 1.2-1.5%.

Other stocks such as NALCO, JSPL, Tata Steel and Ratnamani advanced between 0.5-1%.

Meanwhile, JSW Steel and Adani Enterprises gained marginally.

Adani Enterprises and Tata Steel are the latest to announce their March 2021 (QFY41) result today.

In Q4FY21, Adani Enterprises consolidated net profit attributable to owners (before Exceptional Item) increased to almost seven times at Rs413cr. Also, consolidated total income was at Rs13,689cr. Consolidated EBIDTA increased by 65% at Rs1068cr.

Coal India on the index traded on a flat note.

On the contrary, APL Apollo was the top underperformer plunging 1.5% followed by Hindustan Zin tumbling 0.8%. MOIL slipped marginally.

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.

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