Metal company stocks extended their gaining spree on Tuesday as base metal prices globally cruised higher. A host of factors such as concerns over supplies from Chile, declining inventories, strong demand from top consumer China and lower dollar has activated fresh buying in metal stocks.
In Chile, mining unions hinted at a protest if the government does not block early pensions withdrawal. Meanwhile, port workers have also decided on a general strike.
Furthermore, China's steel exports increased 16% YoY to 7.5 million metric tonnes in March 2021, from 6.48 mnt in the same month a year ago. Also, the production grew by 19% to 94.02mnt in March 2021 as against 78.98mnt in March 2020.
In the Indian markets, on Tuesday, at around 12.55 pm, Nifty Metal was trading at 4,630.95 up by 94.65 points or 2.09%. The index has touched a new record high of 4,654.50 in early deals.
NALCO and Hindalco
were top gainers on the index soaring nearly 6% and 5% respectively. Welspun Corp and NMDC surged by 3.5% and 3%. Meanwhile, APL Apollo strengthened by 2.9%.
Between 2-2.5% rise was recorded in stocks like Adani Enterprises, Vedanta
and Tata Steel.
Stocks like MOIL, Hindustan Zinc and JSPL also climbed more than 1% each. Hindustan Zinc is set to announce its March 2021 quarterly result later today.
Ratnamani and JSW Steel gained by 0.7% each, while Coal India jumped marginally.
was the top underperformer but traded broadly on a subdued level.
Overnight, at the Shanghai exchange, Copper gained 0.83%, aluminium surged 0.76%, zinc soared 2.25%, nickel grew 1.87% and lead climbed 0.42%, while tin dipped 0.05%.
Moreover, at the London Metal Exchange (LME), Copper strengthened 2.37%, aluminium advanced 1.48%, zinc zoomed 2.68%, nickel rose 1.92%, lead higher by 1.02% and tin grew 1.12%.
At the LME, Copper close at $9,778/mt on Monday, which is the highest since $9,750 a tonne clocked in August 2011. SHFE 2106 copper contract finished at 71,570 yuan/mt.