Metal stocks soar 2% on BSE on global cues

Witnessing strong investor sentiment metal sector stocks today ended 2.10 per cent higher on the BSE, buoyed by a firm overseas trend in base metal prices following strong Chinese macroeconomic and output data and pick up in domestic demand.

Mirroring the upbeat trend, the 13-share BSE metal index emerged as the second best performer among sectoral indices by gaining 336.10 points, or 2.10 per cent, to 16,327.38, extending support to the key benchmark Sensex, which ended 182.89 points higher at 19,691.78..

Metal stocks that registered substantial gains up to 8.22 per cent were JSW Steel, Tata Steel, Hindalco, Nalco, Hindustan Zinc and Sterlite Industries.

The trading sentiment in metal stocks turned bullish after prices of most base metals at the London Metal Exchange, which generally sets the price trend, strengthened on the back of strong Chinese macroeconomic and output data.

China refrained from raising borrowing costs even as inflation surged and increased imports by the world's largest consumer, boosted the outlook for demand of metals.

Stocks of the country's largest alloy-maker, Tata Steel, gained 2.05 per cent to Rs 630.80 after touching an intra-day high of Rs 633.90 on the BSE.

JSW Steel remained extremely bullish on frenzied buying through out the session and stock prices climbed 8.22 per cent to Rs 1,129.50, boosted by the company's announcement to raise Rs 462 crore through the issuance of securities to Japan's JFE Steel Corporation.

Hindalco, makers of aluminium and copper, ended 3.14 per cent higher at Rs 221.50, Hindustan Zinc gained 1.45 per cent to Rs 1,167.45.

In addition, Sterlite Industries was up by 0.24 per cent at Rs 164.95, Jindal Steel and Power by 0.26 per cent to Rs 697.40, National Aluminium by 3.12 per cent to Rs 369.05, SAIL by 2.58 per cent to Rs 181.15 and Jindal Saw by 0.34 per cent at Rs 183.60 and Welspun Corp by 6.05 per cent to Rs 164.65.

Meanwhile, at the London Metal Exchange, copper surged to an all-time high of $9,120 per tonne, surpassing previous high of 9,091 per tonne touched on December 9.