Metal stocks emerged as front-runners on the Bombay Stock Exchange today on a flurry of buying by funds after all base metals surged overseas on faster-than- expected manufacturing growth in China amid an impressive growth in the Indian economy.
The surge led the BSE metal index, which gained 529.94 points, or 3.39 per cent to end the day at 16,156.05, outperforming other sectoral indices.
Meanwhile, the key benchmark Sensex ended 328.75 points, or 1.68 per cent higher at 19,850.00.
Tata Steel, JSW Steel, Sterlite Industries and Hindalco, which recorded hefty gains, extended major contribution to the sectoral index.
Market analysts said the rally in metal company stocks was powered by a surge in the entire base metals at the LME and Shanghai as faster-than-expected manufacturing growth in China and increasing US consumer confidence, which rose in November to the highest level in five months, boosted the outlook for the global economy.
Besides, firming trend on the other Asian bourses and higher opening on the European markets, too bolstered the sentiments, they said.
Stocks of the country's largest alloy maker Tata Steel led the rally by ending 5.04 per cent higher at Rs 613.65, while JSW Steel soared 6.67 per cent to Rs 1,205.45.
The country's largest copper and zinc producer, Sterlite Industries' stocks gathered 1.76 per cent to Rs 164.55 per kg, while Hindalco Industriess, the biggest aluminium producer, surged 3.66 per cent, its steepest rise in two-week, to Rs 213.60.
Other contributers were SAIL, which rose by 2.43 per cent to Rs 181.05, Hindustan Zinc by 3.12 per cent to Rs 1,183.40, National Aluminium by 3.95 per cent to Rs 366.70 and Jindal Steel and Power by 3.76 per cent to Rs 660.70.
Globally, at the London Metal Exchange copper traded 0.9 per cent higher at $8,432.50 per tonne, aluminium by 0.40 per cent to 2,283.75, lead by 0.9 per cent to $2,250, zinc by 1.3 per cent to $2,140 and nickel advanced 0.2 per cent to $23,100 per tonne.