Stocks of metal companies rose between 0.7% and 8.5% on Tuesday on the back of factors such as Vedanta posting strong earnings, zinc prices surging to a five-year high, and an official gauge of factory activity in China rising to its highest level in two years.
All the components of the metal index except JSW Steel advanced. Leading the pack was Vedanta, whose better than expected results pushed its stock price to hit a fresh 52 week high at R225, before ending the session at R219.65 a rise of 8.50%.
Vedanta on Friday posted a net profit of R1,251.13 crore, for the quarter ended September 2016, a rise of 17.14% compared to its net profit of R1,068.95 during the same period a year ago.
Hindustan Zinc hit a fresh 52 week high at R275.90 on Bombay Stock Exchange as prices of Zinc surged to a five-year high. The benchmark Zinc contract in London Metal Exchange rose to $2,462 a metric tonne after touching $2,479.50, the highest since August 2011. A total of 78.67 lakh shares of Hindustan Zinc changed hands during the day which was three times of its three-month average of 22 lakh shares.
Shares of steel manufacturers Tata Steel and Jindal Steel also rose by 3.23% and 2.98% respectively as the official gauge of factory activity in China rose to its highest level in two years, driven by higher commodity prices and a property boom. The hot roll coil futures in Shanghai Futures Exchange hit a two-year high of 3042 yuan per tonne. China’s official manufacturing purchasing managers index also increased to 51.2 in October from September’s 50.4,its National Bureau of Statistics said.