Nifty Metal index hits 52-week high

Tata Steel, National Aluminium Company and NMDC have hit their respective 52-week highs on NSE in intra-day trade.

Shares of metal companies were trading higher in an otherwise range-bound market as the Nifty Metal Index hitting 52-week high on the National Stock Exchange (NSE) on Monday.

At 09:50 am, Nifty Metal Index, the largest gainer among sectoral indices, was up 1.52% at 2,707.15, against 0.28% rise in the Nifty 50 index.

The metal index hit a 52-week high of 2,712.25 in intra-day trade, surpassing its previous high of 2685.15 touched on September 8, 2016.

National Aluminium Company (up 7% at Rs 52.50), Tata Steel (3% at Rs 418) and NMDC (1.6% at Rs 119.70) have hit their respective 52-week highs on the NSE in intra-day trade. Vedanta, Hindalco Industries and Steel Authority of India (SAIL) were up 1% and 3%.

Shares of Tata Steel has rallied 7.5% in past two trading sessions after the company said its sales rose by 12% year on year (y-o-y) to 2.62 million tonnes (MT) in the quarter ended September 30, 2016 (Q2FY17). The company had recorded sales of 2.33 MT in the same quarter of 2015-16 fiscal.

“Tata Steel Europe is expected to witness a QoQ increase in reported EBITDA/te as spread increase benefit will help the company in Q2FY17. Steel players result does look better on YoY comparison vis-à-vis non-ferrous, with the exception of Hindalco,” analysts at ICICI Securities said in metals sector update.

According to Business Standard reports, the second extension of the central government-set Minimum Import Price (MIP) in steel is likely to lay the ground for more price increases by domestic producers. CLICK HERE TO READ FULL REPORT.