Nifty Metal tops 3% amid higher base metal prices as demand improves, corporate earnings; JSW Steel, Tata Steel shine

Benchmark Sensex and Nifty 50 have pared their early gains, but Nifty Metal continues to pick up the pace.

Apr 29, 2021 12:04 IST India Infoline News Service

Indian metal company stocks continued to record stellar buying sentiments even on Thursday led by higher base metal prices globally as demand improves and also corporate results of heavyweights. Benchmark Sensex and Nifty 50 have pared their early gains, but Nifty Metal continues to pick up the pace. Nifty Metal index has jumped to a new record high of 4,793.30.

At around 12.29 pm, Nifty Metal was trading near the record high at 4,790.05 up by 145 points or 3.12%.

JSW Steel was the top gainer on Nifty Metal soaring by 7% followed by Tata Steel advancing nearly 5%. MOIL and SAIL climbed by 4.4% and 4% respectively.

NALCO surged nearly 3%, while Hindalco and Vedanta zoomed by nearly 2% each. JSPL and Adani Enterprises gained by 1.4% and 0.7% respectively. Hindustan Zinc was marginally up.

Hindustan Zinc registered a net profit of Rs2,481cr for the quarter ending March 2021 (Q4FY21), rising by a whopping 85% yoy and 13% QoQ is driven by a recovery in metal prices and strict cost discipline. For full fiscal FY21, the company's net profit soared by 17% yoy to Rs7,980cr. Operating profit (EBITDA) climbed by 98% yoy and  17% sequentially to Rs3,875cr in Q4FY21 on account of higher revenue, favourable pricing environment and well-controlled operating costs.

On the contrary, on Nifty Metal, Welspun Corp is the top underperformer tumbling by 1.4% followed by Coal India and APL Apollo plunging by 0.5% each. Ratnamani was down 0.4%.

Overnight, Shanghai and London base metals cruised higher after the US Federal Reserve kept interest rates near zero despite giving a brighter economic outlook. The US Fed stated that the economy has improved along with the job market.

At Shanghai Future Exchange, Copper settled higher by 1.29%, aluminium surged 0.76%, zinc gained 0.56%, nickel climbed 2.82% and tin soared 3.27%, while lead shed 0.62%. Meanwhile, at the London Metal Exchange, aluminium edged up 0.04%, nickel strengthened 2.36%, lead inched higher 0.07% and tin climbed 4.06%, while copper slipped 0.22% and zinc dived 0.09%.

Further, China's announcement for removal of VAT rebates on exports of 146 steel products from 1 May, has also lifted metal stocks. Starting next month, the VAT rebate of 13% of the VAT charged on exports on products such as hot-rolled coil, wire rod and rebar will no longer apply. Also, products like cold rolled steel sheet, hot-dip galvanized sheet and narrow strip were in the list of products where the rebate is eliminated from May. 

Related Story

Open Free Demat Account (Rs699)