Nifty Metal Rises For Fifth Straight Day, Strong Rally In NMDC To Tata Steel Driven By Global Cues

Mumbai: Metal stocks continued to shine on December 23 as the Nifty Metal index closed higher for the fifth consecutive trading session. The index gained 0.54 per cent, or 58.05 points, during the day. Over the past five sessions, the index has risen by nearly 1.93 percent. Out of the 15 stocks in the index, 13 were trading in the green, showing broad-based buying interest.

NMDC and PSU Stocks Lead the Rally

NMDC emerged as the top performer in the metal pack, rising over 4.28 percent. Other metal stocks such as Lloyds Metals and SAIL also gained more than 2 percent. Shares of Hindustan Copper, Jindal Steel, Tata Steel, Welspun Corp and Hindustan Zinc were up by over 1 per cent, adding strength to the overall index.

US Rate Cut Hopes Lift Metals

One of the main reasons behind the continued rally is the expectation of interest rate cuts in the United States. Investors believe that the US Federal Reserve may lower interest rates in the coming months. Lower interest rates usually support higher metal prices, as borrowing becomes cheaper and economic activity improves, which increases demand for metals.

China’s Spending Boosts Demand

China’s policy measures are also supporting metal stocks. The Chinese government is increasing spending on infrastructure, power projects, renewable energy and urban development. This is helping maintain strong demand for metals such as steel, copper, aluminium and zinc. Even though China’s real estate sector remains weak, government-led spending is keeping metal demand steady.

Tight Supply and Rising Global Demand

Another key factor is the imbalance between supply and demand. The supply of metals like copper, aluminium and silver remains limited, while demand is rising due to electric vehicles, solar energy and new technologies. At the same time, opening new mines has become difficult and costly, which is restricting supply growth.

Weaker Dollar Adds Support

A weaker US dollar is also helping metal prices. When the dollar weakens, commodities like metals become more attractive and expensive globally. All these factors together have supported metal stocks and kept investor sentiment positive.

Disclaimer: This information is for educational purposes only and not investment advice. Stock market investments involve risk. Please consult a certified financial advisor before making any investment decisions.