Metal stocks rebound on firm global cues

Metal stocks, which suffered the most in the previous session, bounced back on the Bombay Stock Exchange today on emergence of buying by funds on the back a firm trend in base metals in global markets as a weak dollar increased commodities' appeal.

The surge led to the BSE metal index, which gained 314.12 points, or 1.89 per cent, settling the session at 16,891.43, thus supporting the key benchmark Sensex to end 65.50 points or 0.35 per cent higher at 19,930.64.

Tata Steel, Sterlite Industries and Hindalco, which registered hefty gains, were the major contributers to the sectoral index.

Market analysts said the rally in metal stocks was powered by a recovery in all the base metals at the London Metal Exchange and Shanghai as demand for metals picked up at low levels and a weak dollar raised appeal for commodities as an alternative investment.

Besides, a firm trend on other Asian bourses and easing food inflation, too buoyed the sentiments, they said.

Stocks of the country's largest steel maker Tata Steel ended 2.98 per cent higher at Rs 623.40 after touching an intra-day high of Rs 626.

The country's largest copper and zinc producer, Sterlite Industries' stocks gathered 2.69 per cent to Rs 177.25 per kg, while Hindalco Industries, the biggest aluminium producer, surged 4.86 per cent to Rs 222.35.

Other gainers were SAIL, which rose by 0.24 per cent to Rs 189.70, Sesa Goa by 0.69 per cent to Rs 340.75, JSW Steel by 3.54 per cent to Rs 1,276.45 and Hindustan Zinc by 1.27 per cent to Rs 1,195.

Meanwhile, copper prices were up by 2.1 per cent to $8,366 per tonne, aluminium by 1.1 per cent to $2,301 per tonne, lead by 3.2 per cent to $2,338 per tonne, zinc by 3.6 per cent $2,189.75 per tonne and nickel advanced by 1.8 per cent to $21,930 per tonne.