Metal shares rally as LMEX rises over 2% on Thursday

Shares of metal companies are in focus on the bourses after LMEX, a gauge of six metals traded on the London Metal Exchange (LME), rose 2.4% to close at $3,777 on January 26. The index has rallied almost 5% so far in a week on reports that the US Federal Reserve was ready to offer additional stimulus, a move that could lift economic growth and demand for industrial metals. 

The Bombay Stock Exchange (BSE) metal index, the largest gainer among sectoral indices is trading higher by 2% compared with less than 1% gain in the benchmark index Sensex at 1100 hours.

Among the individual stocks, Sesa Goa has soared 6% on reporting higher than expected volumes and price realizations during the quarter ended December.

Sterlite Industries is up 4%, followed by SAIL, Hindustan Zinc and Bhushan Steel by 3% each and Tata Steel and Hindalco by 2% each on the BSE.

“Federal Reserve Chairman Ben Bernanke said late on Wednesday the US central bank was ready to offer the economy additional stimulus after it announced it would likely keep interest rates near zero until at least late 2014,” a Reuters reports suggests.