The Bombay Stock Exchange’s (BSE) metal index was the largest gainer among all sectoral indices, outperforming the Sensex, during the current week on the back of a sharp rise in metal prices on the London Metal Exchange (LME).
The metal index gained 4.5 per cent compared to a marginal one per cent rise in the Sensex during the week. The index closed 524.95 points higher at 12,220.45, against the previous week’s close of 11,695.50. Jindal Steel, Hindustan Zinc and Sesa Goa jumped over five per cent, closing at one-year highs on BSE.
Sesa Goa, JSW Steel, National Aluminium and Hindustan Copper saw their trading volume rise by over 50 per cent in the period.
On LME, the prices of aluminum, aluminum alloy, lead, copper wire bar, tin and nickel surged around 10-19 per cent on the emergence of buying interest. The LME index — LMEX — which is a measure of six metals, comprising copper, aluminium, lead, tin, zinc and nickel — appreciated six per cent in the week.
Sesa Goa was the top gainer among the metal index stocks, rising 29 per cent to Rs 202.90 from Rs 157.19. The company announced the acquisition of V S Dempo & Company’s mining assets in Goa in an all-cash deal of Rs 1,750 crore.
Hindustan Zinc gained four per cent to Rs 665.05 from Rs 637.70 on BSE. The company has raised prices of zinc, used in producing galvanised steel, and lead, used by batteries, rubber and paint industries, between 2.5 per cent and 4 per cent.
According to a steel ministry official, the country’s steel demand may gain during the current financial year as the government plans to spend more on infrastructure. JSW Steel is the largest gainer among steel stocks gaining 21 per cent to Rs 706.65 from Rs 584.75.
Jindal Steel and Power rose 11 per cent to Rs 2,516.25 from Rs 2,275.40, followed by Hindalco 8 per cent at Rs 100.45 (Rs 92.90) and Sterlite Industries 7 per cent at Rs 718.10 (Rs 672.20).
