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The Nifty Metal index emerged as the top-performing sector on Tuesday, gaining over 1.4%; Key points for investors
Metal Stocks Rise In Tuesday’s Trade
Metal Stocks Shine: The Nifty Metal index emerged as the top-performing sector on Tuesday, gaining over 1.4 per cent, as investor sentiment received a boost following China’s decision to cut benchmark lending rates to support its economy amid escalating trade tensions with the United States.
China Rate Cut Fuels Demand Optimism
The People’s Bank of China (PBOC) announced its first rate cut in seven months, aimed at stimulating credit demand and economic growth. The central bank lowered the one-year Loan Prime Rate (LPR) by 10 basis points to 3.00 per cent from 3.10 per cent, while the five-year LPR—used primarily for mortgages—was reduced to 3.50 per cent from 3.60 per cent. These adjustments, in line with market expectations, signal Beijing’s efforts to revive growth amid domestic weakness and external pressures.
Boost for Indian Metal Producers
The move raised hopes of increased metal consumption in China, the world’s largest consumer of base metals, which in turn benefits Indian metal exporters and producers. Analysts noted that any stimulus measures in China typically spark a global rally in commodity-linked stocks, particularly in metals like steel, aluminium, and copper.
Key Gainers: Hindustan Copper, Tata Steel, SAIL
The Nifty Metal index climbed 1.43 per cent intraday, extending its rally for a second consecutive session. Hindustan Copper led the pack, rising 2.19 per cent to hit an intraday high of Rs 231.61 on the NSE. Tata Steel and Steel Authority of India Ltd (SAIL) gained 1.69 per cent and 1.65 per cent, respectively.
Other notable gainers included Hindalco Industries, Vedanta, and Hindustan Zinc, which saw gains of up to 1 per cent during the session.
China’s latest monetary easing follows a series of earlier measures, including reductions in re-lending tools and policy bank funding, as authorities look to counteract sluggish demand and the impact of US tariffs. The fresh rate cuts are expected to bolster infrastructure spending and industrial activity, thereby driving up global demand for base metals.
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