Nifty Metal, Nifty PSU Bank Propel Indices To New High

On expected lines, Indian indices started the week on a strong note and hit fresh record high yet again. On the Nifty, levels hit have been 18,521, while that on the Sensex the levels are close to 61,900 at 61,894. Broader markets too are seeing a rally.

Nifty Metal, Nifty PSU Bank Propel Indices To New High

Meanwhile, among sectoral indices Nifty Metal and Nifty PSU Bank have been the most buoyant with gains of over 3 percent and 2.5 percent, respectively.

With the PSU Bank pack, there have been gains to the extent of over 6 percent on Jammu and Kashmir bank, while all other banks ranging from UCO Bank to Union Bank traded with gains of between 1 to more than 5 percent. Union Bank, Indian Bank, Canara Bank and SBI have hit fresh 52-week high.

Likewise, within the metal pack, of the 15 total constituents, 2 stocks Adani Enterprises and APL Apollo tubes traded in the red, while counters such as Hindalco, Hindustan Copper, NALCO, Vedanta and Hindustan Zinc traded with gains of between 5-12 percent.

Interestingly, commodity boom and commodity prices at multi-year highs have been behind the spur in stock price of metal stocks. Zinc price has also hit a 10-year high and there is an announcement that Nyrstar- a multi-metals foreign business entity that it shall reduce the production levels by up to 50 percent on high energy cost. Likwise, copper also surged to record high levels of near $10,000 per ton.

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