Russia-Ukraine crisis: Combined m-cap of firms in BSE Metals tops Rs 10 trn

Metals and mining firms have become unintended beneficiaries of the ongoing conflict between Russia and Ukraine, even as the broader equity market remains under pressure. The combined m-cap of the stocks in the BSE Metals index crossed Rs 10 trillion on Wednesday, up from Rs 9.53 trillion on Monday.

In comparison, the combined market cap of stocks that are part of the BSE Sensex was down to Rs 111 trillion on Wednesday, from Rs 112.43 trillion on Monday.

 The BSE Metal index that tracks the share price of the country's top 10 metals & mining firms was up 4.6 per cent on Wednesday, against a 1.4 per cent decline in the benchmark index. Coal India was the top gainer among large-cap stocks, up 8.5 per cent; it was followed by Tata Steel (up 5.6 per cent) and Hindalco (4.34 per cent).

This is not surprising given a sharp surge in energy and commodity prices after the Russian invasion of Ukraine. The London Metal Exchange Index (LMEX) that tracks the price of six major industrial base metals — such as copper, aluminum, zinc, and nickel — was up 2.25 per cent on Wednesday to climb to an all-time high of 4,965.

Analysts expect the divergence to continue as Russia remains one of the world’s top producers and exporters of energy and industrial metals.