Metal stocks rebound on firm global cues

Metal stocks rebound on firm global cues

Mumbai: Metal stocks, which had been under pressure for the past few sessions, bounced back on the Bombay Stock Exchange (BSE) on Tuesday.

Bargain buying by funds, amid a firm trend in base metals in global markets backed by hike in steel prices by manufacturers resulted in the surge.

With the significant recovery in the metal firm stocks, the BSE metal index emerged second best performer among sectoral indices by climbing 373.37 points, or 2.31%, to 16,528.72, thus supporting the key benchmark Sensex to end 209.80 points, or 1.11% higher at 19,092.05.

Market analysts said the rally in metal stocks was buoyed by the recovery in copper and other base metals at the London Metal Exchange and a hike in steel prices by leading domestic manufacturers alternative investment.

Besides, expectations of strong third quarter earnings by firm makers, firm trend on other Asian bourses and higher opening on the European bourses, also buoyed the sentiments, they said.

Stocks of the country’s largest steel maker Tata Steel ended 1.53% higher at Rs632.45 ahead of its follow-on share sale issue for investors, offered at a discount to the price in the secondary market.

The country’s largest copper and zinc producer, Sterlite Industries’ shares gathered 4.42% to Rs177.15, while Hindalco Industries, the biggest aluminium producer, gained 2.09% at Rs229.80.

Other gainers were SAIL, which rose by 2.90% to Rs161.70, Sesa Goa by 0.69% to Rs340.75, JSW Steel by 3.81% to Rs1,012.60.

Meanwhile, copper prices were up by 0.6% to $9,687 per tonne, aluminium by 0.5% to $2,446 per tonne, lead by 0.2% to $2,646.50 per tonne, and nickel by 0.6% to $26,000 per tonne.