etals Shine on D-Street: Benchmark indices were trading higher on Wednesday amid steady global cues, and healthy buying in metals. The index added over a per cent in the morning session on January 18.
Metal stocks in domestic trading advanced as much as 1.3 per cent, benefitting from China’s flurry of policies, rolled out to assist homebuyers and property developers and relieve a long-running liquidity squeeze in the industry.
Hindalco Industries and Tata Steel rose over 2 per cent each to be the top gainers on the Nifty 50. The other gainers included Hindustan Zinc, APL Apollo Tubes, Jindal Steel & Power, SAIL, Vedanta, and JSW Steel.
The global brokerage and research firm CLSA believes that a faster reopening in China and stimulus are helping drive a recovery in metal demand in India.
“The US recession now looks imminent but could be shallower than earlier expectations. While domestic demand is resilient, large steel capacity addition could keep dependence on exports high," the research firm said.
The brokerage has upgraded its coverage on the Tata Group mega-cap stock Tata Steel from ‘Sell’ to ‘Outperform’, meaning the global brokerage has turned super bullish on the metal stock from bearish and has raised its target price on the heavyweight stock from Rs 90/share to Rs 135.
