1. Metal Stocks Trade Higher, Extend gain, Nalco soars 7%
Metal stocks were
trading higher in the
afternoon trade on
Friday on firm global
cues. Amidst optimism
that demand will
accelerate, sentiments
improved after a
report displayed
orders for business
equipment hiked in
the US, strengthening
the outlook for the metal sector. Among the ten components in the BSE Metal
index, Nalco was trading close to 7 per cent up at Rs.56.55, followed by JSW
Steel - up 2.49 per cent, Tata Steel - up 2.02 per cent and NMDC - 1.59 per cent.
Other metal stocks such as SAIL, Coal India and Jindal Steel were up 1.02 per
cent, 1.15 per cent and 1.54 per cent respectively. The BSE Metal index was
trading 1.08 per cent higher at 10,480 in afternoon trade.
However, those of Vedanta, Hindustan Zinc and Hindalco were seen down 0.11
per cent, 0.29 per cent and 0.29 per cent, respectively. Equity benchmark BSE
Sensex was trading 1.14 per cent or 294.43 points, higher at 26,154.
According to a Press Trust of India (PTI) report, increasing demand from the
consumer industries on the domestic spot market are backing metal prices. On
a year-to-date basis, Vedanta share price has surged the most at 142 per cent
till 24th November. They were followed by Hindalco share Price - up 112.67 per
cent, Hindustan Zinc share price - up 83.78 per cent, JSW Steel share price - up
57.18 per cent and Tata Steel share price - up 55 per cent. The BSE Metal index
has surged 39.25 per cent to 10,368 as of 28th November from 7,445 on 1st
January.
2. The China Effect:
Commodity prices have witnessed a reversal in trend especially all the
industrial commodities which weren’t doing well for the last few years after
the Chinese economy began cooling down and several metal producers began
cutting production of closing mines.
According to some analysts, latest Chinese annual growth, services activity and
manufacturing activity have shown signs of stabilisation, and estimates of
increase in global demand for the metal especially in the US after freshly
elected President Donald Trump stated that he will boost the infrastructure
spending that will help cushion sharp negative movement in the price of
base metals.
Company Latest 1-Week
Before
Gain(%)
NALCO 56.3 50.2 12.15
VEDANTA 227.1 204.2 11.21
HINDUSTAN ZINC 275.25 249.55 10.3
HINDALCO 181.85 165.5 9.88
NMDC 123.95 113.95 8.78
TATA STEEL 411.1 385.1 6.75
LMEX, a gauge of 6 metals traded on the LME - London Metal Exchange has
rallied 6.8 per cent in the past 4 trading sessions and closed at 2,826 on
Thursday, its highest level since the month of May 2015.
3. Disclaimer
The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research
team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022
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his Relative:
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Article Written by
Salman Hashmi
