Metal stocks: Earlier during the day, the Nifty Metal index hit a fresh 52-week high before sharply falling due to correcting commodity prices.
Hindustan Zinc share price: The stock hit a new 52-week high of Rs 566.70 today. It is still around 61% lower than its all-time high level of Rs 1,443 per share, which it had hit in January 2011.
Metal stocks: The Nifty Metal index nearly 3% on Friday, extending gains for the third consecutive session
'For investors, now is less about chasing quick rebounds and more about anchoring on balance sheets, capacity utilisation and long-term demand visibility,' an analyst said.
The Nifty Metal index jumped more than 2%, emerging as the top sectoral gainer on the market today. The index has now gained around 3% in two days.
Metal stocks: Hindustan Copper shares were the top loser on the index, falling nearly 6% to trade at Rs 343.60 apiece
The Nifty Metal index declined over 0.7 percent to stand at 9,424, while the Nifty Realty index fell more than 0.5 percent to hover around 912, as seen at 10.20 am.
Metal, realty stocks: Weaker US dollar, no repo rate cut from RBI and poor earnings by some of the players further fuelled the downturn in the sector.
'Given the current landscape of heightened volatility and mixed technical signals, traders are advised to adopt a cautious 'sell-on-rise' strategy,' says Hardik Matalia.
Metal stocks: The rise in the US currency came after US inflation data for the month of June hinted at pressures from President Donald Trump's harsh tariffs, which in turn led to lower bets for Federal Reserve's rate cut.
Vedanta share price: The US-headquartered short seller took a short position of VRL’s debt, calling it a 'parasite holding company'.
RBI MPC meet outcome: The rally in metal stocks is in line with several rate sensitive sectors like banks and realty, as well as the overall stock market.
US Treasury Secretary Scott Bessent on May 29 said that US-China tariff talks are a 'bit stalled' and a deal will be concluded possibly after the direct involvement of Donald Trump and Xi Jinping.
Jefferies is bullish on India’s steel sector, initiating and maintaining buy calls on key names like Jindal Stainless, Tata Steel, and Coal India
India's retail inflation inched down to 3.16% in April; US consumer price index increased 0.2% last month, below expectations of a 0.3% gain
Vedanta Group Chairman Anil Agarwal had shared the group's plan to invest Rs 50,000 crore in Assam and Tripura's oil and gas sector over next 3-4 years.
Experts warned that the escalating trade conflict could severely impact global growth, further pressuring metal prices
Investors had sold off metal shares on worries over a possible US recession and the implications of a global trade war. However, reports of China considering a stimulus and the weakness in US dollar has likely helped metal stocks stage a recovery.
The initial reaction of metal stocks to Trump's 26 percent tariff was one of relief but it soon turned to despair
India runs the risk of dumping of steel products into the country after the US tariff imposition, along with concerns over the impact of tariffs on global demand.
The recommendation came after the authority observed that there has been a sudden spike in the imports of these products into India. This could have a serious impact on the domestic companies.
China has unveiled a special action plan to boost domestic spending by increasing residents' income. Additionally, uncertainties around Trump tariffs continue to persist.
APL Apollo Tubes was the top gainer on the index, rising nearly 3 percent to trade at Rs 1,414 per share. The stock has now strongly recovered after hitting a 52-week low of Rs 1,273 per share on February 17.
Metal index constituents continued to trade under selling pressure for the second straight day amid profit-taking. This comes after 5 session rise last week.
Emkay Institutional Equities sees potential earnings upgrades for the Hindalco, Vedanta and NALCO if alumina and aluminium prices stay high, boosting stock performance.