BSE Metal index surges 3% as base metals climb to multi-year highs

Metal stocks top performers: Here's why metal stocks were in demand on the Dalal Street on Wednesday.

The BSE Metal index surged 3 per cent to hit a fresh all-time high at 31,120 on the back of rise in base metal prices to multi-year highs. The BSE Metal index was the top sectoral mover on the BSE. In comparison, the S&P BSE Sensex has gained 0.4 per cent at 74,050 levels as of 12:40 am.

In the commodities space, base metals have witnessed sharp price surge in April. Among the key base metals Copper was seen trading at 2-year high; Aluminum at its highest level since June 2022 and Zinc at 1-year high.

That apart, India's recently reported strong economic data that showed business activity in the country hit a near-14-year high. The HSBC India Manufacturing PMI stood at 59.1 in April 2024, with manufacturing growth remaining at 16-year high.

Further, markets are hoping of further easing of policy by China's central bank in its bid to boost the economy. China is the world's second largest economy and the largest consumer of base metals. Chinese output tends to have a significant impact on base metals.

Among the metal stocks, part of the BSE Metal index, SAIL stock was the top gainer - up over 8 per cent at Rs 165. SAIL was followed by NMDC stock - up 4.7 per cent.

JSW Steel and Jindal Steel gained around 4 per cent each. The Tata group mining major - Tata Steel rallied over 3 per cent. Hindalco stock gained 2.7 per cent, while Vedanta and Jindal Stainless Steel added 2 per cent each. Coal India stock was up 1.5 per cent.

The BSE Metal index has surged over 10 per cent so far in April 2024; whereas, the BSE benchmark index, the Sensex, has moved 0.5 per cent higher.

On the earnings front, Vedanta will be announcing its March quarter results on Thursday, April 25.