Shares of major metal companies rose by as much as 3 per cent in morning trade on the Bombay Stock Exchange (BSE) today, driven by speculation of a price hike during the peak festival season.
The rally was led by aluminium producer Hindalco, which surged by 3.4 per cent to touch a one-year high of Rs 197.40 on the BSE, becoming the top performer on the 30-share benchmark Sensex.
"The investor confidence is high in metal stocks as there is a buzz in the market that the metal companies may hike their product prices to cash in on the festive season," Ashika Brokers Research Head Paras Bothra said.
Besides aluminium, other metal counters were also trading in positive terrain on the BSE. Private steel-maker Tata Steel rallied by 2.3 per cent to touch a one-month high of Rs 644. Similarly, Sterlite Industries, too, gained 1.91 per cent to Rs 175.65 at the start of the session.
The upswing in metal stocks led to the metal index on the BSE emerging as the biggest gainer among the thirteen sectoral indices in early trade, having risen by 280 points to 16,931.26.
Hindustan Zinc (1.8 per cent), Jindal Steel (1.28 per cent), Nalco (0.88 per cent) and SAIL (0.83 per cent) were among the other gainers in the metal pack. Meanwhile, the Sensex was also trading firm at 20,209.87, up 164.69 points from the previous close.