Nifty Metal outperforms on improved sentiments, index surges 2%; Welspun Corp, NALCO, NMDC soar 3-5%

The Metal index has touched an intraday high and low of 5,426.40 and 5,346.65 respectively.

Aug 24, 2021 01:08 IST India Infoline News Service

Metal company stocks rebounded on Tuesday led by broad-based buying and positive global cues. The Nifty Metal index was the top gainer on NSE with the majority of stocks on a bull run. The sector had been under pressure since last week as investors reviewed the supply and demand situation in industrial commodities globally.

Also, base metal prices were up in early trades on improved market sentiments despite weak US manufacturing and service industry PMI.

At around 1.07 pm, the Nifty Metal was trading at 5,394.05 up by 102.80 points or 1.94%. The index has touched an intraday high and low of 5,426.40 and 5,346.65 respectively.

On the index, Welspun Corp was the top gainer surging 5.1%  followed by NALCO soaring 4.8%. NMDC climbed 3.8%.

Hindalco and Tata Steel advanced by 2.9% each, while SAIL, Vedanta and JSPL zoomed more than 2% each.

Coal India and Adani Enterprises soared more than 1% each. While JSW Steel was up marginally and MOIL traded flat.

On the other hand, APL Apollo was the top bear slipping 3.3% followed by Ratnamani tumbling marginally. Hindustan Zinc traded muted but in red.

Metal stocks took a breather from the previous day's selloff that was sparked due to concerns over slowing Chinese demand and global economic growth and US Fed's stimulus curbs earlier than expected.

The U.S. business activity has slowed to an eight-month low in August to 55.4  from earlier 59.9 in the previous month, due to materials shortages, a lack of labour and a resurgence in coronavirus infections.

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