Metal stocks continues to shine

In today’s trade the benchmark indices were trading in positive terrain and in addition the Metal stocks too joined the rally. BSE Metal index was up by nearly 2.8 per cent and  touched an intra-day high of 9,042.35. In last one week the BSE Metal index has delivered nearly 7 per cent return.

The leader in today’s metal rally was Jindal Steel which was up by more than 5 per cent followed by Vedanta (up by ~4 per cent). All the BSE Metal stocks except JSW steel were trading in positive terrain in today.

Meanwhile, on trade war front, the first phase was outlined to stop the ongoing trade between US & China which boosted investors’ sentiment across the globe. The US president also put on hold the threatened tariff hike.

Majority of the metal stocks have been under-performing the broader market indices owing to ongoing trade war tension. Also, the slowdown in economy especially in automobile and construction sector is hurting the growth prospect of metal industry.