The Indian stock market is trading in the green largely led by PSU banks and metals stocks. Sensex is up 118.52 points or 0.22% at 52817.52, and the Nifty is trading higher by 42.70 points or 0.27% at 15833.20.
Among the sectors, the metal index jumped close to 3 percent led by Tata Steel and SAIL which jumped over 4 percent each followed by NALCO, JSW Steel, Vedanta, Hindustan Copper and Hindalco Industries among others.
The Chinese government has recently expressed concerns over the higher global commodity prices. And warned traders against taking speculative positions and hoarding. It resulted in a steep fall in the futures of iron ore and steel in China.
If the Chinese government opts to take action, it could put a firm check on surging commodity prices.
It has taken extensive steps to curb exports and increase imports to strengthen its domestic industry.
Global steel production is inching up despite the muted activity levels in India, the second-largest producer of steel, due to the second COVID-19 wave. And, it is likely to pick up further once Indian mills increase their capacity utilisation levels.
With the supply of steel increasing in the international market, it would eventually lead to a moderation in steel prices shortly.
Over 300 stocks have hit new 52-week high on BSE including names like Apollo Hospitals, Laurus Labs, Shree Renuka Sugars, Max Financial Services, Bharat Electronics, Bajaj Finserv, Oil India and Infosys among others.
On the other hand, 350 stocks have hit upper circuit on BSE including Shree Renuka Sugars, Jet Airways and Inox Wind among others.
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