Huge buying was noticed in the metal index after Alcoa reported its quarterly result which beat analyst expectations. Alcoa is the largest US Aluminum producer. The company announced it second quarter results on 11th July 2016. This has changed the overall sentiment for metal shares globally. Nalco Share Price surged 12.37% intraday. The stock which was trading at Rs. 43.80 on 8th July 2016 is currently trading at Rs. 49.50 in just 2 trading session. Nalco is a Navaratna company under Ministry of Mines, Govt of India.
Tata Steel rose 4.97% on Europe joint venture bid. Tata Steel is looking for an alternative to the sales of its UK assets and is planning to overcome barriers which have taken place due to Brexit. The company will sell all its assets in the UK that it acquired in Corus deal in 2007. Tata Steel Share Price closed at Rs. 318.35 on 8th July 2016 and is currently trading at Rs. 342.30.
Hindalco Share Price was up by 5.00% at Rs. 135 reacting to the result of Alcoa. Jindal Steel share price surged 8.43% intraday, Steel Authority of India was up by 5.17%, Vedanta share price rose 8.55% and Hind Zinc was up by 3.16%. Coal India announced buy back of its share at Rs. 335 per share on 11th July 2016. The stock made its all time high of 447.25 on 5th August 2015.
Global Buzz
Globally Metal price has shown huge upward movement. LME (London Metal Exchange) copper rose from Friday’s (8th July 2016) low by 3.55%, LME Nickel was up by 9.55%, LME Aluminium surged 1.65%, LME zinc rose 5.37% and LME Lead was up by 3.42%.
Conclusion
There has been a positive change in Metal stocks price movement after the budget, where Metal Index raised 39.65% post budget and benchmark Index Nifty was up by 20.46%. Any correction in metal stocks can be a good buy in the sector. NALCO looks very prospective for investment purpose among all other metal stocks with a support of Rs. 44.50.
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