Shares of metal producers such as Tata Steel, Vedanta, JSW Steel, Jindal Steel, NMDC and National Aluminium, among others rose up to 6% on Tuesday after China announced measures to boost the property market.
Shares of National Aluminium (6%), NMDC (4.59%), Tata Steel (4.22%), Vedanta (4.46%), JSW Steel (2.87%) and Jindal Steel (3%) were among the top gainers in the metal stocks-led rally today.
JSW Steel stock climbed 2.87% to a record high of Rs 1,009.80. Earlier today, the rally in Sensex and Nifty to fresh record highs was led by metal stocks.
The BSE metal index surged 847 points or 2.63% to 33,026 in the current session. The index was the top gainer among 19 BSE sectoral indices.
The Nifty metal index also climbed 254 points to 9,709 riding high on the sentiment booster from China.
China will lower the interest rates of existing mortgage loans and unify the down payment ratios for mortgage loans, said reports.
Commenting on the stimulus measures in real estate by China, Parthiv Jhonsa, Lead Analyst (Metal & Mining), Anand Rathi Institutional Equities said, "The Chinese government is expected to lower the outstanding mortgage rate and reduce the down payment required for second home purchases. Additionally, there may be opportunities to renegotiate or refinance existing mortgages among banks, and the government plans to enhance its re-lending program for state-owned firms to help absorb unsold property inventories. Historically, while a rebound in metal prices is anticipated in the short term, it has often fallen short of expectations. We believe that the Chinese housing market has been struggling for the past four years, and unless there is stabilisation in prices and a reduction in unsold inventory, any government initiatives will likely be inadequate."
In terms of stocks, National Aluminium rose 6% to Rs 190.75 on BSE today. Market cap of the firm climbed to Rs 35,061 crore.
Shares of NMDC climbed 4.59% to Rs 225.45 on BSE. Market cap of the firm climbed to Rs 65,850 crore.
Shares of Tata Group's metla firm Tata Steel climbed 4.22% to rs 161.25 with the market cap of the firm rising to rs 2 lakh crore.
Vedanta stock too saw a gain of 4.46% to Rs 473.60 on BSE. Market cap of the Anil Agarwal-led firm stood at Rs 1.84 lakh crore.
Jindal Steel & Power stock too rose 3% to Rs 1052.80 with the market cap of the fimr climbing to Rs 1.06 lakh crore on BSE.