Stock Market Today: The Nifty Metal Index gained more than 2% in the intraday trades on Tuesday following the Israel-Iran ceasefire news. From Tata Steel to SAIL, share prices of various metal stocks gained up to 4%, while Hindustan Copper and NMDC were also among key gainers.
Nifty Metal Index rebounds
The news flow around the Israel-Iran war had been adding to pressure on the metal stocks for the past. However, the news flow around the Israel-Iran ceasefire meant that the Nifty Metal Index jumped more than 2%. The Nifty Metal Index opened at 9,290.7 and gained further to intraday highs of 9,395.70, which meant gains of more than 2% during intraday trades.
Steel Authority of India Ltd (SAIL) share price gained more than 4%, while Tata Steel and JSW Steel Jindal Steel and Power share prices gained more than 2%. NMDC share price also gained more than 3%, and Hindustan Copper share price, with more than 4% gains, was also among prominent gainers.
Among non-ferrous stocks, Hindalco Industries, Vedanta Limited, National Aluminium Company (NALCO) share prices also gained up to 2%
Reasons for the rally in Nifty Metal Index
The reasons for the rally in metals stocks were attributed to news flow around the Israel-India ceasefire that had helped the rally in the markets, and the Benchmark Nifty-50 Index jumped more than 1%.
The positive news flow around the Israel-Iran ceasefire was attributed as a key reason for the rally in metal stocks by Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd. However, Tapse also added that the focus now will shift to the US-China trade talks, and this is further contributing to the rise in the metal stocks.
China, being the largest consumer of commodities globally, influences the global steel prices substantially. Any positive progress in trade talks will mean an improved outlook for China’ s metal demand, which will support metal prices globally. This increases the earnings outlook for metals.
The news flow around Hindustan Copper eyeing mine auctions to acquire critical minerals and rare earth elements blocks also encourages and contributed to the rally in the Hindustan Copper share prices and its outperformance of all other non-ferrous stocks
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