D-Street Buzz | Metal stocks dazzle; JSW Steel, SAIL, Jindal Steel, Vedanta, Tata Steel hit 52-week high

Metal stocks have been hogging the limelight for a year as the increasing pace of economic recovery has augmented the demand scenario for the sector.

April 06, 2021 / 12:30 PM IST

Metal stocks were on a roll as the sectoral index along with several of its components hit a fresh 52-week high in intraday trade on April 6.

The Nifty Metal index made a fresh 52-week high of 4,305.50 and 6 stocks of the index - Adani Enterprises, JSW Steel, SAIL, Jindal Steel, Vedanta and Tata Steel - also hit their 52-week highs.

At 1130 hours, Nifty Metal was 1.65 percent up with 12 stocks in the green and three stocks - Hindustan Zinc, NMDC and Ratnamani Metals - in the red.

Metal stocks have been hogging the limelight for a year as the increasing pace of economic recovery has augmented the demand scenario for the sector.

In the financial year 2021 (FY21), the Nifty Metal pack emerged as the top sectoral gainer, surging 151 percent compared to the Nifty's 71 percent jump.

Close

After the COVID-19 dealt a severe blow to the economy in the early part of FY21, metal stocks started to rise as investors anticipated economic recovery.

Brokerage firm Edelweiss Securities believes that the dream run for ferrous players has not only accelerated but also extended beyond expectations.

"With a domestic price hike looming large, export realisation at a 5 percent premium and no threat of imports, we expect good times for ferrous stocks to continue," Edelweiss said.

"The biggest beneficiaries of this rally are likely to be companies with iron ore security—Tata Steel and SAIL—as domestic iron ore price in Odisha has seen a moderate uptick again with Odisha Mining Corporation (OMC) and Essel Mining announcing price hikes," said Edelweiss.

"We expect NMDC to follow suit. Hence, we remain positive on the ferrous space with Tata Steel, SAIL and JSPL as our preferred picks," it added.

Read more: Nifty Metal index jumps 9% in last two weeks, 151% in FY21; does it have steam left?

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Moneycontrol News
first published: Apr 6, 2021 11:48 am

stay updated

Get Daily News on your Browser
Sections