Nifty Metal stocks rally 1% to boost markets; Steel companies lead the revival

5 Jan 2022 , 12:16 PM

Nifty Metal stocks rallied 1% to hold the markets on Wednesday. The Index was bearish on Tuesday but recovered well today to lift markets amid volatile trade.

Steel companies Jindal Steel & Power, JSW Steel, Tata Steel, and SAIL led the gains. Production cuts in China, reduction in leverage, increasing profitability, and a sharp correction in stock prices in the past three months have made Indian steel stocks in demand. Welspun Corp and Ratnamani were under pressure.

Indices were caught in a narrow band on Wednesday after Asian equities fell, with tech shares hurt as investors fretted about interest rate hikes. Wall Street indices diverged on Tuesday as Treasury yields climbed amid expectations of a Fed rate hike in early 2022.

At around 12.00 noon, BSE Sensex was trading at 59,992.48 up 136.55 points or 0.23% and Nifty50 at 17,849.85 up 44.60 points or 0.25%. Nifty Metal was trading at 5,661.65 up 54.80 points or 0.98% touching a high of 5,671.50 and low of 5,583.25 during intraday trade on Wednesday.

Jindal Steel & Power rose above 3% at Rs400.00 per piece to boost the Index. JSW Steel was over 2.5% higher at Rs687.30 per piece. Tata Steel was nearly 1.6% higher at Rs1,167.00 per piece and SAIL was 1.5% on the upside at Rs111.50 per piece. 

APL Apollo Tubes (up 1.56%), National Aluminium (up 1.26%), Hindustan Copper (up 1.09%) and NMDC (up 1.07%) were also in the fast lane.

Welspun Corp shed 1.35% at Rs182.95 per piece while Ratnamani was nearly 1% lower at Rs1,931.80 per piece. Adani Enterprises and Hindalco were also in the red. The Index had 11 advances and four declines.