Metal stocks trade 13% brighter as MOIL, GMDC, Nalco, JSW Steel, Tata Steel spike

13 out of 14 constituents of Nifty Metal index see strong gains

Metal stocks soared on October 12 with 13 out of 14 constituents of the Nifty Metal index posting strong gains. MOIL jumped more than 13 percent in early deals, while NMDC and Gujarat Mineral Development Corporation (GMDC) rallied up to 8 percent.

Other metal stocks such as Nalco, Hindustan Copper, SAIL, Hindalco, JSW Steel, Tata Steel, and Welspun Corporation jumped up to 5 percent.

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Earlier on October 11, the Cabinet approved royalty rates for the mining of critical and strategic minerals like lithium, niobium and some rare earth elements (REEs). The government will impose "reasonable" royalty rates on lithium at 3 percent of the London Metal Exchange price, niobium at 3 percent of the average sale price and, for REE, the rate will be 1 percent of the average sale price of rare earth oxide.

The decision came after the government removed six minerals, including lithium and niobium, from the list of ‘specified’ atomic minerals, which could push participation of private sector through the auctioning concessions for these minerals.

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