Metal stocks like Hindalco Ltd., NALCO Ltd. and Jindal Steel & Power (JSPL) Ltd. have gained between 2% and 4% on Wednesday with Hindalco emerging as the top gainer on the Nifty 50 index.
In fact, shares of Hindalco have gained in 11 out of the last 13 trading sessions. Hindalco is also the top gainer on the Nifty Metal index, which is currently trading with gains of 1.6%.
The Nifty Metal index has also gained in nine out of the last ten trading sessions. This is the biggest single-day gain for the index since October 10.
All but three stocks on the Nifty Metal index - NMDC, Jindal Stainless and Hindustan Copper are trading with gains.
While the economy outperformed expectations in the July-to-September period, recent indicators have pointed to
weakening momentum and demand as the final quarter kicked off.
Policymakers are taking steps to add stimulus to help the economy, including via an unconventional mid-year budget revision and the approval of 1 trillion yuan worth of sovereign bonds for infrastructure investment last month.
"We may see Hindalco stock price consolidate for a couple of months because they have indicated that in the next quarter, there would be some shutdowns. However, I think we are likely to see a better second half or the fourth quarter, so one can continue holding the stock as the management has guided for EBITDA per Tonne to be above 500 for the second half on average. So Hindalco looks good at current levels and one can continue to hold," said Shahina Mukadam, market expert.
The Nifty Metal index is yet to turn positive for the year, currently trading 1.1% lower for 2023.
