Shares of miners NMDC and Steel Authority of India (SAIL) surged upto 11 per cent on Tuesday on robust metals trade data from China, the world’s biggest consumer of metals, and soaring iron ore prices.
China’s iron ore imports rose 8.3 per cent to 73.61 million tonnes in February from a year ago, while steel export rose by 4 per cent.
At 11.51 am, shares of NMDC and SAIL were trading 7.36 per cent and 9.24 per cent up at Rs 95.60 and Rs 43.75, respectively. The 30-share Sensex was trading 44.24 points, or 0.18 per cent, up at 24,690.72.
Iron ore prices have surged 46 per cent so far this year on hopes that Chinese steel demand will pick up. Base metals are not far behind, with zinc up 11 per cent, and copper and aluminium up around 5 per cent for the year so far.
Other metal stocks such as Vedanta, Hindalco, Jindal Steel and Nalco were up between 4-6 per cent.
Chokkalingam G, founder, Equinomics Research & Advisory, said, “Iron ore prices went up on Monday by 19 per cent in the international markets. This improved investors sentiments on Tuesday.”
The BSE Metal index was trading over 2 per cent up in the noon trade.
(With inputs from Reuters)