Mumbai: Metal stocks shot up by over 3% in early trade on Monday after the government announced measures in its stimulus package and the Reserve Bank of India slashed key lending rates to boost economic growth.
Mirroring the upbeat mood in the metal stocks, the BSE Metal index climbed 176.45 points, or 3.17%, to 5,737.69, with all the 15 components of the sectoral indices trading in the positive territory, gaining up to 4.75%.
Tata Steel, largest steel makers in the private sector, shot up by Rs9.75, or 4.1% at Rs239.40 on the BSE with nearly 5.61 lakh shares changing hands at 11:00am.
Sterlite Industries stocks also witnessed fresh round of buying and gained Rs13.05, or 4% at Rs288. Over, 1.95 lakh shares changed hands.
Stock brokers said sentiment was bullish on hopes that rate cuts by the RBI would provide increased funds at much lower rates.
The government in its package to revive the economy, withdrew exemptions from countervailing duty on TMT bars, used in constructions activity, and withdrew basic customs duty on zinc and ferro alloys to provide a shield to domestic producers against cheap imports.
The RBI have also slashed its key lending rates by 1% in co-ordinated move to boost economic growth.
Further, Hindustan Zinc gained Rs 15.35, or 4.31%, at Rs371.45, Hindalco was up 4.74% to Rs58.60, Jindal Steel by 1.46% to Rs856.05, Welspun Gujarat by 2.64% to Rs122.50, Nalco 2.39% to Rs208.20, Sesa Goa by 3.81% to Rs95.30 and state-run SAIL 1.61% to Rs85.25.