Metal stocks rally up to 10% as global prices strengthen
Metal stocks soared up to 10 per cent in early trade on Thursday after copper prices jumped 4 per cent in London trade to hit the highest level in 16 months on expectation that policies under the US President Donald Trump could spur infrastructure spending.
Zinc and nickel prices also rose to fresh highs not seen since mid-2015. Reacting on the global developments, the BSE Metal index was trading 5.11 per cent higher at 10,920 in morning trade.
All the 10 components in the benchmark Metal index were trading in green, with Jindal Steel and PowerBSE 9.54 % surging 9.19 per cent, followed by NMDCBSE 6.55 % (up 8.16 per cent), Tata Steel (up 7.64 per cent), HindalcoBSE 6.62 % (up 6.83 per cent), Hindustan ZincBSE 6.42 % (up 6.20 per cent) and Vedanta (up 5.88 per cent).
Other metal stocks such as SAILBSE 4.73 %, Nalco and JSW SteelBSE 3.86 % were trading higher by 5.43 per cent, 4.48 per cent and 3.77 per cent, respectively. The BSE Sensex was trading 413.48 points, or 1.52 per cent, up 27,666.01 at the same time.
G Chokkalingam, Founder, Equinomics Research and Advisor, said: “Rising global metal prices boosted metal stocks on Thursday. Also, they are high beta stocks so they are outperforming benchmark indices. Going forward, I believe Tata Spong BSE 4.05 % can give good return to investors.”
The BSE Metal index has risen nearly 48 per cent in last one year to 10,378 till November 10, 2016, whereas BSE Sensex has jumped 5.35 per cent during the same period.