Nifty Metal index crosses 10,000 mark for first time as stocks rally up to 20%
commodity prices, the 15 constituent Nifty Metal index crossed the 10,000 mark for the first time ever in Tuesday’s session, before closing nearly 4% higher at 9,981.
The Nifty Metal index has been on a rising spree, making new highs since the second half of 2023. The index also made new all-time highs in 5 consecutive trading sessions.
The rally in the metal space can be attributed to a significant surge in demand from China — a major player in the global metal market — while the geopolitical concerns in regions like Southeast Asia and Russia have also restricted the supply of certain metals. This has further contributed to driving up the prices of these metals.
Further, an increased shift towards electric vehicles coupled with a boost to the infrastructure and manufacturing sectors in India has added to the domestic demand for metals.
“There are certain aspects which are hinting at slight recovery in China. So, China being the elephant in the room, if there is recovery in China, it has repercussions for metal per se that is point number one. And over a period of time people are thinking on the lines of interest rates, which might peak out in this financial year. If that is true, then again, it is again a sentimental positive for metals,” said Surjitt Singh of PGIM India Mutual Fund.
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“Metal companies are giving a lot of inputs in terms of incremental things improving in terms of prices, so in the last
