 "Nifty Metal index touches 7-month high")
Metal shares continued to trade higher on the bourses on Wednesday, with the Nifty Metal index touching seven-month high on National Stock Exchange (NSE) today.
Hindalco Industries, Bhushan Steel, Steel Authority of India (SAIL), Vedanta, Jindal Steel & Power and National Aluminium Company are trading higher over 1% each.
At 10:52 AM, the Nifty Metal index was up 1% at 1,930 as compared to 0.40% decline in the Nifty 50 index. The metal index hit an intra-day high of 1,938, its highest level since August 2015. In past one-month, Nifty Metal index outperformed the market by surging 17% as compared to 8% rise in the Nifty 50.
Among individual stocks, Hindalco Industries has rallied nearly 5% to Rs 91 on the NSE in intra-day trade. In past one-month the stock rallied 34%.
“We view Hindalco as the best play on aluminium price recovery and believe that the market has given up on any hope of material recovery in base metal prices, ignoring demand-supply dynamics completely. Sharp underperformance of non-ferrous stocks has led to valuations compressing to around 0.4x book (FY16E) – lowest since the CY09 economic crisis despite much better overall positioning of companies, with capex cycle behind and well-invested assets ready to deliver cash flow,” Centrum Broking said in report dated March 21, 2016.
Hindalco Industries, Bhushan Steel, Steel Authority of India (SAIL), Vedanta, Jindal Steel & Power and National Aluminium Company are trading higher over 1% each.
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At 10:52 AM, the Nifty Metal index was up 1% at 1,930 as compared to 0.40% decline in the Nifty 50 index. The metal index hit an intra-day high of 1,938, its highest level since August 2015. In past one-month, Nifty Metal index outperformed the market by surging 17% as compared to 8% rise in the Nifty 50.
Among individual stocks, Hindalco Industries has rallied nearly 5% to Rs 91 on the NSE in intra-day trade. In past one-month the stock rallied 34%.
“We view Hindalco as the best play on aluminium price recovery and believe that the market has given up on any hope of material recovery in base metal prices, ignoring demand-supply dynamics completely. Sharp underperformance of non-ferrous stocks has led to valuations compressing to around 0.4x book (FY16E) – lowest since the CY09 economic crisis despite much better overall positioning of companies, with capex cycle behind and well-invested assets ready to deliver cash flow,” Centrum Broking said in report dated March 21, 2016.
| Name | 23/02/2016 | LTP | % chg |
| Orissa Minerals | 1399.45 | 1906.30 | 36.22 |
| Vedanta | 73.05 | 96.90 | 32.65 |
| Hindalco Inds. | 68.50 | 90.05 | 31.46 |
| SAIL | 35.60 | 44.55 | 25.14 |
| Tata Steel | 253.55 | 312.90 | 23.41 |
| Welspun Corp | 83.50 | 97.90 | 17.25 |
| Nalco | 33.80 | 38.90 | 15.09 |
| Bhushan Steel | 34.05 | 37.90 | 11.31 |
| Jindal Steel | 56.50 | 62.75 | 11.06 |
| JSW Steel | 1124.00 | 1235.45 | 9.92 |
| NMDC | 93.20 | 101.35 | 8.74 |
| Hind.Zinc | 163.85 | 170.65 | 4.15 |
| Jindal Saw | 39.70 | 39.90 | 0.50 |
| Coal India | 301.10 | 295.20 | -1.96 |
| Nifty Metal | 1644.75 | 1930.65 | 17.38 |
| Nifty 50 | 7109.55 | 7677.10 | 7.98 |
| LTP - Last traded price on NSE in Rs at 11:05 AM | |||
