Metal stocks extend rally on price, policy cues

Vedanta, Hindustan Zinc lead as commodity prices climb

- DEEPAK KORGAONKAR

Shares of metal companies, both ferrous and nonferrous, were in demand on Wednesday, with the Nifty Metal index surging 27 per cent on the National Stock Exchange at the close of trade in an otherwise tepid market.

The Nifty Metal index was the top gainer among sectoral indices, while the benchmark Nifty 50 slipped 0.26 percent.

Vedanta hit a new high of 679.45 before closing at 676, up 6 per cent. Hindustan Zinc touched a multiyear high, rising 6 per cent to t670 before ending 4 per cent higher at 655. Hindustan Copper gained § per cent to %569, while Tata Steel rose 4 per cent to 189.35. National Aluminium, Jindal Steel, and Steel Authority of India advanced between 2 per cent and 5 per cent.

Gold and silver hit fresh record highs as softer US inflation data strengthened expectations of Federal Reserve rate cuts this year. Ongoing geopolitical and economic uncertainty continued to drive safe-haven demand. Civil unrest in Iran and rising geopolitical tensions further supported buying interest in precious metals, said Rahul Kalantri, vice-president (commodities) at Mehta Equities.