Nifty Metal index rises 2%: Tata Steel, Hindalco NALCO, Vedanta, NMDC share prices among key gainers | Stock Market News
Source: Live Mint
Stock Market Today: Nifty metal Index gained more that 2% during the intraday trades on Tuesday. While National Aluminium Company and NMDC were leading the gains having risen close to 5% and even above, Steel Authority of India Ltd Vedanta, Tata Steel, Hindalco were also not far behind.
Even Hindustan Copper, Hindustan Zinc, Jindal Steel and Power share prices too had seen smart gains.
As the Benchmark indices scaled record highs on Tuesday with Sensex crossing 85000 mark and Nifty-50 Index close to 26000, the market sentiments remain strong. However the gains for the metal index is being driven by China demand revival prospects.
China stimulus may provide a earnings boost
China’s central bank has reduced the amount of cash banks must have on hand and lowered a key interest rate on Tuesday in an effort to support the country’s faltering economy, as per news reports.
China remains the largest consumer of commodities in the world and a stronger China demand can lift up global demand and prices too.
Analysts at Anand Rathi research had said that “the piecemeal stimulus by the Chinese government over the last few quarters has not led to a meaningful revival in the sector and, unless the government undertakes a substantial stimulus, the near-term outlook will be bleak”
Not surprising the metal stocks are responding to fresh efforts by China to stimulate the economy.
The steel price in India have felt the pressure of global steel prices , which have remained soft due to lower China internal demand and higher exports . The January to August 2024 exports increased 19% yoy to 70.72m tonnes as per Anand Rathi Research.
As Tata Steel, Jindal Steel and Power, Steel Authority of India share prices may be rising, the share prices of NMDC too are gaining strength.
The iron-ore prices that stood at more than $115 a tonne in MAy’2024 had slipped to close to $90 a tonne (CFR China). This had meant significant correction in NMDC stock price of more that 20% during the period. Not surprising with China news the NMDC share price is rebounding. NMDC share price gained up to 4.65% on the BSE during intraday trades.
In the Non -ferrous space, the National Aluminium Company Ltd (NALCO) share price gained more than 5%, while Vedanta Ltd share price and Hindalco Industries Ltd share price also gained up to 4.5% on Tuesday during the intraday trades
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