Nifty Metal index bounces back 3.4% from day's low amid strong spike in metal prices
Also Read: Gold rate today: Israel-Iran war continues to fuel gold prices Amidst an overall market downturn, the Nifty Metal index has emerged as a standout performer, representing the only sectoral index trading in positive territory today. At the start of the session, the Nifty Metal index experienced a decline of 2.3%, reaching an intraday low of 8,744 points. However, within the subsequent hours of trading, the index rebounded sharply, currently showing a gain of 0.95% at 9,041 points.
From the day's low, the index has recovered by almost 3.40%. In recent weeks, metal stocks have been steadily climbing due to a robust rally in metal prices, including copper, zinc, lead, steel, and aluminum. This surge is attributed to the resurgence in global manufacturing activities.
Further, the upward momentum in metal stocks is anticipated to persist in light of the recent imposition of sanctions on Russian metals by the US and UK. These measures are aimed at restricting the financial resources accessible to Russian President Vladimir Putin for military operations. Also Read: Why is India stock market down today? Explained with 5 reasons The sanctions prohibit the London Metal Exchange, where global benchmark prices are set, as well as the Chicago Mercantile Exchange, from accepting fresh supplies coming from Russia.
These restrictions, reported by Bloomberg, include copper, nickel, and aluminum produced on or after April 13. Additionally, the US has imposed a ban on Russian imports of these three metals. Notably, palladium and titanium, metals for which Russia is a major supplier, have been excluded from these restrictions.
Read more on livemint.com
