Rally in Metal index has more steam left; Vedanta may soar another 15%

While Nifty Metal index is just 140 points short of a new historic peak, Vedanta shares gracefully achieved it today

The Nifty Metal index has surged over 9 per cent so far this week amid expectations that Russia-Ukraine conflict can significantly impact steel trade.

The Metal index touched an intra-day high of 6,173 and is 140 points short of all-time high of 6,312 level touched in October 2021. During the last three sessions, where the frontline indices could not add many gains, the Nifty Metal index climbed 850 points, offering 16 per cent returns.

"The conflict between Russia and Ukraine risks has impacted the steel market significantly, in our view. Russia and Ukraine together accounted for 45 million metric tonne