Metal stocks on the rise
As the price of metals in the international market rises, the metal stocks are rising in tandem. The metal index is up over 2.5% and of the 10 companies listed in this index, 9 are advancing and only one, Coal India, is on a decline.
The top gainer in the index is Hindalco, followed by SAIL, Jindal Steel, Tata Steel, VEDL, Nalco, JSW Steel, HindZinc and NMDC.
In normal circumstances, metal stock surge when there is a rebound in growth, especially China. But this time around, in these extraordinary times, due to Covid, mining activity has taken a back seat and this in itself is causing the metal prices to soar and there is a perception that there will not be enough supply when demand starts.
On the LME, copper yesterday rose over 40% from its 45-month low in March. Zinc price has surged 3%. Aluminium too is on the rise.