Faster-than-expected recovery in the US economy and the resultant tapering of stimulus by the US Federal Reserve could potentially affect risk sentiment and impact flows to emerging markets like India
Individually, Hindalco rose 6.2 per cent, Nalco (6 per cent), Adani Enterprises (3.4 per cent), and Welspun Corp (3 per cent)
BSE Metal up just 164% since Jan '05 against 645% rally in Sensex
Market cap of top 10 firms has risen 33% since January
The country's top brokerages expect Nifty50 companies to report a combined net profit of Rs 1.2 trillion in Q4FY21, translating into year-on-year growth of 142 per cent from Rs 49,645 crore a year ago
Analysts expect more pain for automakers since prices of steel and non-ferrous metals, such as copper, aluminium, and zinc, have increased further in three months
The markets are undergoing a turbulent phase but metal companies seem in a bull market
The BSE metal & mining index is up 144 per cent since the end of March 2020
The Nifty Metal index is struggling to sustain above the 3,600 mark. However, once breached decisively, an up move towards 4,000 levels can not be ruled out.
JSW Steel, Hindustan Zinc, Ratnamani Metals and Tubes, Tata Steel, MOIL, and Jindal Steel were up in the range of 2 per cent and 3 per cent.
Going forward, analysts at Phillip Capital expect metal companies to report further improvement in operating performance in Q3FY21 results
Stocks of all major steel producers hit a new one-year high with Tata Steel leading the pack
Analysts see downside risk in stocks as the world economy faces the prospects of fresh lockdowns
Metal & mining firms to gain; others may see margins contract
Sunflag Iron, Tata Steel Long Products, Jindal Stainless (Hisar) and Jindal Stainless among non-index stocks that surged more than 5 per cent on the BSE
The gain in share prices has been supported by the rally in commodity prices
Nifty Metal has successfully conquered the 2,500 mark and is set to move towards 200-WMA, which stands at 2,969 levels.
In the past one week, Nifty Metal index has outpaced the market by surging 8 per cent, as against 0.28 per cent gain in the Nifty50 index
The company reported a consolidated net profit at Rs 59 crore in Q2FY21, as against loss of Rs 197 crore in the year ago quarter
Out of the total deliveries of metal, aluminium accounted for 30,771 tonnes, copper 24,852.50 tonnes, lead 10,517 tonnes, nickel 3,646.50 tonnes and zinc 37,027 tonnes