The shares of metal stocks jumped in trade on October 29. The sharp rise in the share prices pushed the Nifty Metal index up more than 2 percent in the morning to hit a record high of 10,824.70.
The surge in metal stocks comes on the back of rising expectations cooling trade tensions between China and US and a possible rate cut by the US Federal Reserve. The metal index has now extended gains for the sixth consecutive session, rising more than 4 percent during the period.
Metal stocks soar:
Steel Authority of India (SAIL) shares soared nearly 8 percent to trade at Rs 142 apiece. The company is set to announce its results for the second quarter of the financial year 2026 later today. Hindustan Copper shares followed, jumping more than 3 percent.
Hindustan Zinc and NMDC shares jumped nearly 3 percent, while Vedanta, JSW Steel and Tata Steel shares rose over 2 percent each. Jindal Stainless Steel and National Aluminium Company (NALCO) shares rose over 1 percent each.
Jindal Steel & Power, Adani Enterprises, APL Apollo Tubes and Hindalco Industries shares gained nearly 1 percent each.
Trump-Xi meeting:
US President Donald Trump is set to meet Chinese President Xi Jinping on the sidelines of an international summit in South Korea later this week. Trump today said that he expected a "lot of problems" to be solved as part of their upcoming talks.
This came amid concerns following escalating trade tensions after Trump announced that he will hike tariffs on Chinese imports to a whopping 155 percent earlier last week. The expectations of cooling trade tensions between the two countries may have also boosted the metal stocks.
The high metal prices due to the tight supply and demand dynamics globally also fuelled the rally in metal stocks.
US rate cut expectations:
Jerome Powell is set to announce the key decisions taken by the Federal Reserve’s FOMC meeting today. The American central bank is widely expected to cut its key interest rates by 25-basis-point, according to CME's FedWatch Tool.
“While the Fed is expected to cut rates by a quarter point, traders will scrutinise the accompanying statement and Chair Jerome Powell's comments for signals about future cuts,” said Devarsh Vakil, Head of Prime Research at HDFC Securities. More rate cuts by the US Federal Reserve are likely provide a boost to non-yielding assets.
Also read: Our LIVE blog on stock market updates
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