China’s Economic Moves Boost Indian Metal Stocks

The Indian stock market continues to trade in the red for the fifth consecutive day, following yesterday’s rise in US bond yields. The S&P BSE Metal index gained over 200 points as China decided to adjust its budget to stimulate the economy. China has committed to borrowing 1 trillion Yuan or Rs. 11,500,000 crores through issuing sovereign debt. This investment in infrastructure will lead to increased consumption of commodities, as China already utilizes half of its metal resources domestically.
This surge in demand is driving up metal stock prices in India, led by National Aluminium Ltd and Coal India Ltd, ultimately pushing the S&P BSE Metal index into positive territory.
Dan Smith, who leads the research team at Amalgamated Metal Trading (AMT), expressed his views on this recent development, emphasizing the substantial impact of this stimulus. He said, “This latest stimulus is quite a significant development. It appears that the news from China is effectively countering the strength of the US dollar.”

National Aluminium (NATIONALUM) has shown a strong upward movement with a significant increase of 1.95 points, representing a change of 2.17% in the stock’s value. Jindal Steel (JINDALSTEL) also performed well, showing a 1.77% increase, equivalent to 11.3 points. Coal India (COALINDIA) and NMDC Ltd (NMDC) are both experiencing notable gains, with increases of 1.37% and 1.19%, respectively. On the flip side, there is a slight decline in APL Apollo Tubes (APLAPOLLO), with a decrease of 14.9 points, or 0.91%, where the stock fell the most at 1.38% on the closing basis.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.