Metal shares shine on strong macro data, Nifty Metal hits all-time high

NMDC rallied nearly 7 percent to touch a 52-week high of Rs 134 with 2.46 crore shares changing hands.

Steel PSU SAIL spurted over 5.6 percent to hit its 52-week high of Rs 102.55. Ratnamani Metals & Tubes Ltd also gained nearly 7 percent to hit a record high of Rs 2,775 per share in morning deals.

The country’s major private steel maker Tata Steel touched a 52-week high of Rs 132.90 per share, rising by more than 4 percent. Jindal Stainless Steel spurted around 2 percent to hit 52-week high of Rs 478.30, Apl Apollo Tubes Ltd gained more than 2 percent to touch a record Rs 1,774.70 apiece and Hindustan Copper rose more than 4 percent to hit a record high of Rs 174.75 on NSE.

Of the total 15 Nifty Metal stocks, only Welspun was trading down by 0.38 percent after touching a high of Rs 343.95 per share.

With a strong rally in metal stocks, the Nifty Metal index hit a record high of 7,042.55 in morning deals. In the past week, the index posted gains on four of five sessions, rising by around seven percent on a weekly basis.

A recovery in economic growth, backed by growth in infrastructure and auto industries, has also boosted the demand for metal shares. According to official data released last month, the economic growth was 7.8 percent in the April-June quarter, which was the highest in past quarters. Also easing concerns over commodity prices have also boosted demand for metal shares.

Metal prices are also moving higher on hopes of stimulus in China, and hope of Chinese exports cooling in the second half of 2023. China's efforts to bolster its economy could result in increased demand.

Among other factors supporting the metals are hike in India primary long steel mills rebar prices by Rs 1,500/tn, fourth since early August. The cumulative hike has been to the tune of Rs 3,500-3700/tn in August due to strong pre-election demand, lack of rain and increasing prices of iron ore and cooking coal.