Shares of metal companies rallied up to 6 per cent on the BSE on Thursday after a slew of positive global developments lifted investor sentiment.
Among individual stocks, Coal India zoomed 6 per cent, National Aluminium Company (Nalco) rose 4.8 per cent, JSW Steel, Tata Steel, Jindal Steel & Power, and Steel Authority of India all gained over 3 per cent, while Hindustan Zinc was up 2 per cent on the BSE. The S&P BSE Metal index, the highest sectoral gainer on the BSE, climbed 2.72 per cent to 8,620 levels.
Metal stocks gained after China said it will hold trade talks with the United States in early October, raising hopes they can de-escalate their trade war before it inflicts further damage on the global economy.
China’s Commerce Ministry said its trade team will consult with their US counterparts in mid-September in preparation for negotiations in early October, hinting at progress in reducing trade friction, Reuters reported. Both sides had agreed to take actual actions to create favorable conditions, the ministry added, without giving more details.
China’s confirmation of trade talks added to upbeat geopolitical news overnight. A parliamentary vote in Britain put the brakes on the nation’s no-deal exit from the European Union, and Hong Kong withdrew a contentious extradition bill that sparked recent protests.