Nifty Metal holds steady amid monthly data; Coal India, NMDC, Tata Steel lead the sectorial gains

3 Jan 2022 , 10:40 AM

On Monday, metal companies started its first trading session of 2022 on a positive note driven by broad-based buying in major stocks tracking positive Indian benchmarks. The sector is in focus ahead of its monthly production data which lifted the mood for investors.

However, according to the experts, the market seems to witness volatile trend ahead on account of potential risk from Omicron variant and fragile global cues.

 On the Nifty index, 12 scrips advanced and 3 scrips declined.

At around 10:40 AM, Nifty Metal was trading at 5,551.60 up by 29.85 points or 0.54%. The index has touched an intraday high and low of 5,563.45 and 5,526.15 respectively.

Coal India emerged as the top bull, surging over 3.5% followed by NMDC, Tata Steel and SAIL contributed the sector soaring over 0.7% each followed by Adani Enterprises, Vedanta, Jindal Steel and Hindustan Zinc gaining over 0.6% each.

Stocks like Hindustan Copper, Welspun Corp, JSW Steel and NALCO climbed between to 0.5% each to support the sector while heavyweight APL Apollo Tubes dropped by 4.05% being the biggest laggard on the index.

Hindalco was marginally lower while Ratnamani Metals traded in the red zone but with a slight drop.

Coal India stocks in focus as the industry reported 3.3% yoy rise in December 2021 coal production to 60.2 MT.

NMDC advanced by 0.75% at Rs134.30 after the company recorded 30% yoy growth in Iron ore production in April-December 2021.

APL Apollo Tubes also delivered its Q3FY22 sales performance where the industry registered a sales volume of 402,729 Ton in Q3FY22. The company said that declined QoQ is due to channel de-stocking in anticipation of steel price correction.