Nifty Metal crosses 6,300 first time as Q2 earnings lift mood; Hindustan Copper, Hindustan Zinc, Vedanta, NALCO surge 12-14%

Except for Adani Enterprises, all other stocks listed on Nifty Metal traded on a bullish note.

Oct 18, 2021 01:10 IST India Infoline News Service

Indian metal companies shrugged off worries about uncertainties arising due to energy crises on a global front, instead traded to new historic highs ahead of major Q2 earnings. The Nifty Metal index crosses the 6,300 mark for the first time as corporate results season fuels buying sentiments along with an upbeat stance on broader domestic markets. Except for Adani Enterprises, all other stocks listed on Nifty Metal traded on a bullish note.

At around 1.50 pm, Nifty Metal traded at 6,259.45 higher by 240.25 points or 3.99%. The index has touched a new 52-week high of 6,300.45 earlier today.

Four heavyweights hit a new 52-week high today. These were - Hindustan Zinc (Rs408.60 per piece), Vedanta (Rs378.30 per piece), NALCO (Rs127.95 per piece) and Hindalco (Rs551.85 per piece).

Hindustan Copper was the top gainer on the index surging nearly 14% followed by NALCO and Vedanta soaring nearly 13% each. Hindustan Zinc jumped over 12%.

Hindalco zoomed nearly 5%, while JSW Steel and Tata Steel climbed 4% and 3% respectively. NMDC advanced 2.6%, while SAIL and JSPL gained by 2% and 1.6%.

APL Apollo and Coal India were nearly 1% up each. Ratnamai surged marginally.

On the other hand, Adani Enterprises was the only laggard tumbling over 1%.

A Bloomberg report stated that Base metals soared led by zinc’s surge to its highest price since 2007 after European smelters became the latest casualties in a global energy crisis that’s knocking supply offline and heaping pressure on manufacturers.

Further, the report highlighted that a gauge of six industrial metals hit an all-time high on the London Metal Exchange, as zinc rose as much as 6.9%. Aluminium, one of the most energy-intensive commodities, touched the highest since 2008. Copper traded briefly over the $10,000-a-ton mark, and spreads are pointing to a sharply tighter market -- spot copper contracts are trading at the biggest premium over futures in nearly a decade as global inventories shrink.

This week, major metal firms are set to announce their Q2FY22 earnings. JSW Steel is set for October 21, while APL Apollo Pipes and Hindustan Zinc earnings are on October 22. 

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