Nifty Metal outperforms markets, index soars over 1%; Hindustan Copper, Vedanta top bulls; JSPL, JSW Steel, Tata Steel add to gains

4 Feb 2022 , 01:36 PM

Metal stocks were in a super rally despite a bearish tone in broader markets on Friday as the Budget outcomes frenzy faded and focus shifted on major corporate earnings. Tata Steel stock will be in focus ahead of its Q3 financial performance. The Nifty Metal index currently traded near its day’s high led by broad-based buying in heavyweights.

At around 1.21 pm, the Nifty Metal index was trading at 5,833.85 higher by 72.25 points or 1.25%. On the index, 11 scrips advanced and 4 scrips declined.

The index has touched an intraday high and low of 5,882.05 and 5,763.40 respectively.

Hindustan Copper and Vedanta stocks were top bulls soaring by 3.6% each. Hindalco and Ratnamani gained by over 2% each.

JSPL surged 1.9%, while stocks like JSW Steel, Tata Steel, SAIL and Hindustan Zinc climbed over 1% each.

NALCO and Welspun Corp were marginally up.

On the downside, NMDC and Adani Enterprises emerged as top bears tumbling by 0.5% each. Coal India and APL Apollo were marginally down.

The Indian steel industry is well poised for growth after Budget announcements. In furtherance of rationalizing various duties, Finance Minister Nirmala Siatharaman announced that customs duty exemption given to steel scrap last year is being extended for another year to provide relief to MSME secondary steel producers. Certain Antidumping and CVD on stainless steel and coated steel flat products, bars of alloy steel and high-speed steel are being revoked in larger public interest considering prevailing high prices of metals.

In commodity markets, a weaker dollar, inflationary pressure and tensions involving Ukraine are expected to lift haven bullion.

Overnight, the US dollar index falls to 3-month lows @95.23 which sees emerging markets attract flows.