Metal stocks surge as US-China trade deal eases economic concerns

Synopsis

The Nifty Metal scale jumped 5.9% - its champion single-day show successful 3 years. Hindustan Copper soared 10%, emerging arsenic the apical gainer of the day. Steel Authority of India Limited (SAIL), National Aluminium Company (Nalco), Tata Steel and JSW Steel, which gained 5-8% each.

Mumbai: Shares of metallic companies were among the apical gainers successful a alleviation rally connected Monday aft the US-China commercialized deal eased capitalist concerns of a global economical slowdown, which was feared to deed request for these commodities.

The Nifty Metal index jumped 5.9% - its champion single-day show successful 3 years. Hindustan Copper soared 10%, emerging arsenic the apical gainer of the day. Steel Authority of India Limited (SAIL), National Aluminium Company (Nalco), Tata Steel and JSW Steel, which gained 5-8% each.

The US and China connected Monday agreed to trim the steep tariffs they had imposed connected each other. As per the agreement, the US volition little its wide tariffs connected Chinese goods from 145% to 30%, portion China volition chopped US tariffs from 125% to 10%.

"We judge commodity prices are poised to fortify from here, benefiting metallic companies crossed the board," said Arijit Malakar, equity probe expert astatine Ashika Stock Broking.

Investors had chopped vulnerability to metallic stocks aft the announcement of Donald Trump's tariffs successful April was feared to trigger a planetary economical slowdown, which would little planetary request for metals.

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Additionally, it was anticipated that the oversupply from China would beryllium dumped successful India, crashing home prices. “Previous concerns astir China dumping metallic into India and a imaginable clang successful metallic prices person eased pursuing advancement connected the US-China commercialized deal, which makes specified dumping actions little likely,” said Malakar.

The Nifty Metal scale is down 1.8% since April 2 against Nifty’s gains of 6.8%. “With a US-China woody likely, concerns astir economical slowdowns successful some countries person eased. This improvement could assistance close the planetary supply-demand imbalance, creating a supportive situation for maturation successful metallic prices,” said Pankaj Pandey, caput of retail probe astatine ICICI Direct.

Malakar prefers domestic-focused players specified arsenic Jindal Steel and Power, SAIL and Nalco. Divyam Mour, probe expert astatine Samco Securities said the outlook for the metallic manufacture is promising successful 2025.

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