Metal stocks jump, OMCs trip; Hindalco and Nalco stocks jump 9% each

Shares of metal companies buoyed on the back of the global commodity rally

The BSE Metal index surged 4.5 per cent, the most since January 23, as investors bet higher prices will boost earnings. Shares of Hindalco and Nalco jumped 9 per cent each and Vedanta gained 6.7 per cent. Steel makers JSW Steel and SAIL gained over 4 per cent each, while Tata Steel gained 3.2 per cent. Shares of oil marketing companies (OMCs) fell sharply as higher crude prices sparked fears of subsidy burden. Bharat Petroleum Corporation and Hindustan Petroleum Corporation fell 6.8 per cent and 5.8 per cent, respectively, while Indian Oil declined 4 per cent. 

Gains in metal stocks also lifted the benchmark indices with the Sensex gaining 0.3 per cent to close at 34,427, while the Nifty50 index rose 0.4 per cent to finish the day at 10,565. The biggest contributors to Sensex gains were L&T (1.7 per cent), YES Bank (2.8 per cent) and TCS (1 per cent). Axis Bank and HDFC were among the losers, declining nearly 1 per cent each. Besides the action in metal and OMC stocks, the market activity was tepid as the Sensex moved in a narrow band of just 120 points and the Nifty saw intra-day fluctuation of only 26 points, one of the lowest ever.