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Metal index hits record high; Hindustan Zinc, Vedanta, Nalco gain up to 18%

The Nifty Metal index surpassed its previous high of 6,079.55 on October 14, 2021.

Buzzing stocks | Nifty Metal index | Markets

SI Reporter  |  Mumbai 

Photo: Bloomberg

Shares of metal companies were in focus in Monday's session as the rose 4 per cent to hit a record high of 6,246.65 in intra-day trade on Monday on rising base metal prices amid higher demand expectations. The surpassed its previous high of 6,079.55 on October 14, 2021.

At 09:57 am, Nifty Metal index, the top gainer among sectoral indices, was up 2.8 per cent, as compared to a 0.66 per cent rise in the Nifty50 index. Among individual stocks, Hindustan Zinc, National Aluminium Company, Hindustan Copper, Vedanta and Hindalco gained up to 18 per cent on the NSE in intra-day trade today.

surged, led by zinc, which spiked to the highest since 2007, after European smelters became the latest casualties in a global energy crisis that’s knocking supply offline and heaping pressure on manufacturers, Bloomberg reported.

Metal supply cuts are spreading from China to Europe, as energy shortages drive up costs for electricity and natural gas, threatening more inflationary pressure from rising commodity prices. The latest big catalyst came on Wednesday when Nyrstar – one of the biggest zinc producers – said it will cut output at three European smelters by up to 50 per cent due to rising power prices and costs associated with carbon emissions, added report. CLICK HERE FOR FULL REPORT

Shares of Hindalco Industries, a leading global aluminum player, hit a new high of Rs 547.65 as they surged 6 per cent on the BSE, gaining 10 per cent in the past three trading days.

On the back of strong aluminum prices, Alcoa reported healthy performance during July-September quarter (Q3CY21). "Good performance of Alcoa is likely to have a positive rub-off on Hindalco’s stock price. Furthermore, the strength witnessed in global aluminum prices also augurs well for Hindalco," ICICI Securities said in a note.

Meanwhile, Alcoa continues to expect a strong 2021 based on the continued economic recovery and increased demand for aluminum in all end The company’s Aluminum segment is forecasting double digit growth on year-over-year shipment volume of value-add products, and the company expects annual global demand for primary aluminum to increase approximately 10 percent relative to 2020 and to surpass the pre-pandemic levels in 2019.

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First Published: Mon, October 18 2021. 10:34 IST