Metal stocks stole the spotlight in today’s trading session, glinting with strong gains. From Tata Steel and Hindalco to Vedanta and Lloyds Metals, the entire pack was on fire, lifting the Nifty Metal index by nearly 5%.
Let’s take a look at the three big reasons why the metal stocks are rallying today:
1. Trump’s tariff timeout brings relief
One of the mood-lifters was the recent surprise move made by the US President Donald Trump with his 90-day pause on reciprocal tariffs. The announcement came as a breather for Indian exporters, especially those in metals like steel and aluminium. These sectors were earlier jittery about higher duties on exports to the US. Stocks like Tata Steel and Hindalco, which have significant global exposure, responded immediately to the development.
2. China stimulus hopes add fuel
Another boost came from across the Great Wall, China. Markets are optimistic that Beijing may soon roll out an economic stimulus to support its slowing economy. For metal companies in India, this spells opportunity. The Chinese economy usually drives up global demand for metals, pushing prices higher.
3. Tata Steel’s transformation plan ignites investors interest
Tata Steel added its own spark to the rally by announcing a major overhaul of its Netherlands operations.
“Tata Steel’s steel making operations at IJmuiden in the Netherlands constitute one of the most strategically located steel plants in Europe with its own deep-sea port and proximity to key customers. The access to offshore wind energy, transmission and pipeline infrastructure will enable the transition to competitive green steel making for which intense engagement is ongoing with all stakeholders including the Dutch Government,” said the company through an exchange filing on April 9.
Key gainers at this hour
At this hour, Hindalco and Lloyds Metal topped the gainers list, surging nearly 7%, followed closely by Tata Steel, which rose 6%. Other key movers included JSW Steel, Vedanta, Hindalco, and SAIL, all posting gains between 4 to 5% during the intraday session.
Moreover, adding to the positive momentum was the continued decline in the US dollar. A weaker dollar tends to benefit commodity exporters like India, making metals priced in dollars more lucrative and boosting foreign inflows into equity markets.