Nifty Metal today touched a record high of 7,734.50 points intraday and gained over 2% on a weaker dollar and the expectation of US interest rate hikes next year, which analysts believe will spur economic growth and raise demand for metals. So far in 2023, Nifty Metal index is up 14%.
“The metal stocks are witnessing good momentum as the Dollar Index has corrected and there is an inverse correlation between the two. We expect stock specific outperformance with this sector,” said Ruchit Jain, Senior Research Analyst at 5paisa. As of November 1, the Dollar index was trading at 107; it is currently on 101.6.
Eight of the fifteen stocks in the Nifty Metal index touched their 52-week high. On Friday, shares of Jindal Stainless, National Aluminum Company, Hindustan Copper, Tata Steel, NMDC, Hindalco Industries, JSW Steel and Steel Authority of India (SAIL) hit a 52-week high and gained 0.5% to over 8%.
Among the laggards were APL Apollo Tubes, Welspun Corp, and Hindustan Zinc.
“Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial information!” Click here!
“We are seeing extensive buying in metal space and Metal Index is now trading in uncharted territory. Expect this activity to continue and dips could be considered as a buying opportunity, Jindal Steel, SAIL, Hindalco are preferred options,” Rajesh Bhosale – Equity Technical and Derivative Analyst, Angel One.
The optimistic mood was helped by remarks made by Federal Reserve Chairman Jerome Powell that the period of extraordinary tightening in US monetary policy may be coming to an end and by talk of possible reductions in borrowing costs.
On Friday, the Sensex, Nifty 50, and domestic benchmark indices all hit new all-time highs. At 10:04 IST, the S&P BSE Sensex gained 0.54% to 70,898.30, while the Nifty 50 index was up 0.58% to 21,306.05 points.
“While the main European central banks kept interest rates steady, this move, along with a four-month drop in the dollar index, made green base metal prices more affordable for foreign buyers.
Positive developments in China, including the easing of home purchase restrictions in Beijing and Shanghai, have contributed to improved sentiment towards the troubled property sector,” said Angel One Analyst Saish Sandeep Sawant Dessai.
Disclaimer: The above views and recommendations are those of individual analysts, experts and trading companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
Unlock a world of Perks! From insightful newsletters to real-time stock tracking, breaking news and a personalized news feed – it’s all here, just a click away! Login Now!
Catch all Business News, Market News, News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More or less
Published: 15 Dec 2023, 14:01 IST