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Amid commodity boom, equity funds increase allocation for metals in July

Top ten metal stocks bought by the equity funds in July included Tata Steel and Hindalco Industries

Skeptics see price rises as largely driven by temporary spurts or bottlenecks -– and point out that similar alarm bells were sounded after the 2008 crash, when inflation never showed up
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Metal stock prices have seen a sharp surge due to the rise in metal prices in global markets and surge in demand in India.

Chirag Madia Mumbai
In the last few months metal stocks have been in demand due to the positive earnings announcements and improved business outlook for the sector. Equity funds have started to ride on the popularity of the metal sector and are investing aggressively into the metal stocks.

The data from Motilal Oswal Fund folio shows that metals’ weight achieved a 33-month high after moderating in the last two months to 3.4 per cent in July. In the current calendar year, average weight in the metal sector was around 2.8 per cent. Top ten metal stocks bought by the equity funds in July