Metal stocks shine amid optimism over healthy outlook; Hindustan Zinc, Hindustan Copper hit record highs
Upstox
2 min read • Updated: April 9, 2024, 7:09 PM
Summary
Sectoral index Nifty Metal, comprising 15 constituents engaged in the metal and mining sector, gained over 2% on Tuesday to hit the day’s peak at 8,985. Nifty Metal has jumped nearly 61% in the last one year and over 11% this year so far.
Metal stocks surged up to 18% on Tuesday with shares of several leading companies in the sector surging to record highs amid hopes of healthy outlook and revival in manufacturing activity globally.
The strong business updates and earnings reports for the quarter ending on March 31, 2024, also aided the rally in metal stocks.
Shares of metal companies like Hindustan Zinc and Hindustan Copper were the top gainers among metal stocks. Hindustan Zinc shares surged as much as 18.46% to touch a fresh 52-week high of ₹408 per piece on the NSE while Hindustan Copper shares also rallied up to 10.57% to a year’s high level at ₹366.4 apiece.
Sectoral index Nifty Metal, comprising 15 constituents engaged in the metal and mining sector, gained over 2% on Tuesday to hit the day’s peak at 8,985. Nifty Metal has jumped nearly 61% in the last one year and over 11% this year so far.
Shares of the state-owned Steel Authority of India Ltd (SAIL) recorded a new 52-week high of ₹153.45 per piece on the NSE, rising 5% during the day.
Other metal stocks like National Aluminium Company Ltd, Hindalco and Vedanta Ltd were among the top gainers among Nifty Metal constituents. Amid the rally in broader market during intraday session Tata Steel, Jindal Steel and Power (JSPL), NMDC and JSW Steel also gained up to 3%.
The rally in metal stocks was noticed after a revival in manufacturing activities in China and the United States, according to reports. The manufacturing Purchasing Managers' Index (PMI) in the United States increased for the first time in 18 months in March to 50.3.
China also witnessed an expansion in its manufacturing activity in the month of March, for the first time since September 2023.
China’s Purchasing Managers' Index (PMI) increased from 49.1 in February to 50.8 in March 2024. Also, as China is the largest consumer of metals in the world, the market observers are hopeful of a healthy outlook for the metal companies in India.