Nifty Metal continues gaining spree, index soars over 1%; Coal India hits new 52-week high; APL Apollo, Hindalco, Adani Enterprises drive

The metal stocks have picked up momentum in the last two days of this week after a panic that was a cause of free fall in China's Evergrande crises.

Sep 23, 2021 02:09 IST India Infoline News Service

Bull Market
Metal company stocks extended their gaining spree on Thursday as base metal prices globally cruised higher. The metal stocks have picked up momentum in the last two days of this week after a panic that was a cause of free fall in China's Evergrande crises. However, China's real estate developer was on a winning streak on bond interest payments promises and base metal prices were reacting positively.

China that is one of the largest steel producers in the world, is currently facing a real estate crisis with giant Evergrande defaulting with a breathtaking $300B liabilities. The realty sector is among the key customers for the metal industry.

Back at home, metal stocks were in deep red on Monday but picked up their gains on Wednesday as well. momentum with significant recovery on Tuesday and further extended

The Nifty Metal today was nearing its record high level of 5,936.10. At around 2.21 pm, Nifty Metal was trading at 5,604.35 higher by 79.70 points or 1.44%. The index has touched an intraday high and low of 5,619.05 and 5,579.50 respectively.

Coal India was among top gainers surging by 3.6% after hitting a new 52-week high of Rs170 per piece. APL Apollo took lead on the index by surging a little over 3.6%.

Hindalco zoomed over 3.4%, while Adani Enterprises surged 2.4%. Vedanta climbed 1.9%, meantime, NALCO and JSPL advanced by 1.6% and 1.5% respectively. Welspun Corp advanced 1.2%.

Hindustan Zinc, JSW Steel and Tata Steel were marginally up. Ratnamani, SAIL and MOIL traded on a flat note.

On the contrary, NMDC was the top laggard plunging nearly 1%.
 
Shanghai base metals traded on the upside earlier today amid strong restocking demand before China’s National Day holiday. Meanwhile, the London Metal Exchange performed on similar lines.

Evergrande announced that it would make a bond interest payment today which gave a major relief to global markets. Major experts have ruled out the possibility of Evergrande being a Lehman Brothers crisis. Evergrande has advanced by at least 20% today. 

Related Story

Open Free Demat Account (Rs699)