Base metals stocks shine as supply crunch, EV push lift copper, zinc prices

Shares of firms in this space up 50-198% since November 2020; global demand for copper and aluminium outstrips supply, pushing spot prices higher than futures

Stocks of base metal companies Hindalco, Vedanta and Hindustan Copper were up between 2.5 and 14.5 per cent on Monday, even as leading indices fell by over two per cent. With this, base metal stocks have seen gains of 50-198 per cent since November 2020 .

Amid a steady economic recovery and Covid-19 vaccination drive in full swing, global demand for base metals such as copper and aluminium has outstripped the supply, pushing spot prices of these metals higher than futures. Besides, expectation of higher inflation and veering of government policies towards electric vehicles (EVs), too, seem to be drawing