Nifty Metal rallies 1.3% to boost markets; NMDC, Hindalco, Nalco lift performance

12 Jan 2022 , 12:55 PM

Nifty Metal index dropped 1.9% in the previous session, rallied 1.3% today amid bullish markets on Wednesday. NMDC, Hindalco, and National Aluminium outperformed to boost the sector. The sector was upbeat despite Jefferies lowering its optimism on Indian metals.

Domestic Indices continued bullish run with Sensex reclaiming the 61,000 peaks, and Nifty comfortably above 18,100. Asian markets traded on a positive note following a rebound in the US after Federal Reserve Chair Jerome Powell reassured investors the central bank will tackle inflation to extend the economic expansion. 

Today, the focus is on the three IT majors–TCS, Infosys and Wipro– which will announce Q3 results today.

At around 12.55 pm, BSE Sensex was trading at 61,083.81 up 466.92 points or 0.77% and Nifty50 at 18,192.90 up 137.15 points or 0.76%. Nifty Metal was trading at 5,682.70 up 72.35 points or 1.29%, touching a high of 5,699.40 and low of 5,653.95 during intraday trade on Wednesday.

NMDC soared 4% and was trading at Rs141.70 per piece, after JP Morgan upgraded its rating on the state-run player on the view that domestic iron ore prices are likely to bottom out and 8 per cent dividend yield of the company is highly attractive.

Heavyweight Hindalco pushed up the sector, gaining nearly 3% at Rs500.40 per piece. Novelis Inc, a wholly owned subsidiary of Hindalco, will invest $365 million in building a higly advanced recycling center for automotive in the US.

The foreign brokerage company Jefferies has downgraded Tata Steel and JSW Steel whereas it has retained its Buy rating on Hindalco.

JSW Steel and Tata Steel were also bullish, trading 1.92% and 1.15% higher. National Aluminium also rose 2.4%. APL Apollo Tubes (up 1.77%) and Jindal Steel (up 1.45%) also lifted the performance.

Adani Enterprises was under pressure, shedding 1% while Ratnamani Metals and Tubes was also marginally lower.