Nifty Metal index crosses 10,000 mark for first time as stocks rally up to 20%

The rally in the metal space can be attributed to a significant surge in demand from China — a major player in the — 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 coupled with a boost to the infrastructure and manufacturing sectors in India has added to the 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 , 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 two-three days whatever numbers have come from the metal pack, the management are alluding to the fact that prices are looking up and we talked to other companies also. They are also of the view that incremental material cost and specifically metal cost starting FY25 has seen some uptick. So, if that sustains, then yes, metals could be one of the decent performers this year,” Singh added.

, , , , , Adani Enterprises, Hind Copper, National Aluminium, JSW Steel, NMDC, Jindal Steel, JSL, APL Apollo, Welspun and Ratnamani Metals & Tubes are the constituents of the index.

The nifty metal index has gained 9% so far MoM and nearly 25% so far in the current calendar year.

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