Metal stocks were in focus on Tuesday, as the Nifty Metal index rose 4% on the National Stock Exchange (NSE) amid hopes of a resurgence in Chinese demand and bargain buying.
Individual stocks like as Vedanta and Hindalco Industries both rose 7% to Rs 307.70 and Rs 419.70, respectively. Apart from that, Hindustan Copper, National Aluminium Company, JSW Steel, and Tata Steel also had gains of 4% to 6%.
The Nifty Metal index was the highest gainer among sectoral indexes at 10:36 a.m., gaining 4.4 percent versus 1.3 percent for the Nifty50 index.
Despite today’s rally, most metal equities have had a 30% correction in the last month. Vedanta, Steel Authority of India (SAIL), Hindalco, JSW Steel, Hindustan Zinc, NMDC, Tata Steel, and Jindal Steel, on the other hand, were down between 13% and 30%. Meanwhile, the Nifty Metal index has dropped 15% in the last month, compared to an 8% drop in the Nifty50 index.
Shanghai laid out plans on Monday for the return to normalcy on June 1 and declared the six-week-long COVID lockdown complete.
In April, China’s economic activity slowed drastically as lockdowns wreaked havoc on industrial production and employment, fueling predictions that the economy could contract in the second quarter.
Industrial metals prices surged on Monday as a result of China’s announcement that COVID restrictions would be eased.