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.