Metal stocks buck trend on firm copper prices

Shares of eleven metal and mining companies rose by 1.71% to 15.07% after copper prices in London jumped on Monday to cross the $9,000 a tonne level for the first time since September 2011.

Hindustan Copper (up 15.07%), Ratnamani Metals Tubes (up 10.04%), Hindalco Industries (up 5.83%), JSW Steel (up 3.49%), SAIL (up 3.14%), NALCO (up 3.09%), Tata Steel (up 2.77%), Hindustan Zinc (up 2.51%), NMDC (up 2.29%), MOIL (up 2.08%) and Jindal Steel & Power (up 1.71%) advanced.

The Nifty Metal index was up 2.20% at 3,630.30, while the benchmark Nifty 50 index was down 1.48% to 14,760.40. The NSE Metal index has zoomed 145.2% from its 52-week low of 1,480.70 recorded on 22 March 2020.

Three-month copper on the London Metal Exchange climbed as much as 3.1% to $9,187 a tonne, the highest since September 2011, helped by a weaker dollar.

Copper, while not considered as a precious metal, is identified as the third most widely used metal in the world. Largely used in power and construction, copper is considered a gauge of economic activity.

Base metals prices are soaring on expectations that post-crisis demand will outstrip near-term supply.

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