Metal stocks in heavy demand; National Aluminium surges 6%, Tata Steel jumps over 4%

Metal stocks were in the limelight on Tuesday after China announced a series of policy measures to support its economy and property market.

Shares of National Aluminium Company jumped 6.16 percent, Tata Steel surged 4.29 percent, Hindalco Industries soared 3.98 percent, NMDC (3.90 percent) and Vedanta (3.80 percent) on the BSE.

The stock of SAIL climbed 3.20 percent, Jindal Stainless (2 percent), Jindal Steel (1.91 percent) and JSW Steel (0.61 percent).

China announced rate cuts and a raft of stimulus measures to help its economy and property market.

"The Chinese central bank's rate cut and additional stimulus measures have positively influenced global investor sentiment, resulting in gains for domestic metal stocks," Vinod Nair, Head of Research at Geojit Financial Services, said.

Tracking a rally in these firms, the BSE metal index jumped 2.78 percent to 33,074.84.

"Metal stocks were in focus after China's central bank announced a series of policy measures to support the economy and the struggling property market," Siddhartha Khemka, Head of Research and Wealth Management at Motilal Oswal Financial Services Ltd, said.

Deepak Jasani, Head of Retail Research at HDFC Securities, said, "Nifty Metal rose to hit a nearly two-month high on Tuesday, as risk appetite for metal stocks improved after China's central bank announced a slew of measures to boost the world's second-largest economy."