Led by Hindalco Industries, metal stocks were back in the limelight on the stock market today on fresh spell of buying by funds, driven by a firm trend in base metals overseas as pick up in manufacturing boosted the demand outlook.
The metal index emerged as the second-best performer among the sectoral indices on the BSE today, ending 370.05 points, or 2.19 per cent higher at 16,477.32 points.
The Bombay Stock Exchange benchmark Sensex rose by 358.69 points, or 1.98 per cent to 18,449.31. Stock brokers mainly attributed the surge in metal stocks to expectations of improved manufacturing activity in the US and the world's largest consumer China boosting demand outlook for metals.
Besides, rising steel prices and strong earnings also generated buying interest for metal stocks, they said. "Bargain buying after recent sharp correction too supported the rally in metal stocks," said a Delhi-based stock broker.
Stocks of Hindalco, the country's biggest aluminum producer, gained the most among metals stocks and ended 4.62 per cent higher at Rs 245.70, while copper producer Sterlite Industries ended 1.93 per cent up at Rs 171.75.
Tata Steel, the country's largest alloy producer, rose by 1.89 per cent to Rs 637.55, Jindal Steel and Power by 1.25 per cent to Rs 650, Hindsutan Zinc by 1.76 per cent to Rs 1,293.40, Bhushan Steel by 1.54 per cent to Rs 400 and Jindal Saw by 3.40 per cent to Rs 218.85, were among the other performers.
Meanwhile, at the London Metal Exchange, copper prices rose by 0.5 per cent to $9,993 per tonne today, aluminium by 0.4 per cent to $2,535 per tonne while nickel went up marginally to $27,999 per tonne.