By Aditya Raghunath
Investing.com -- Metal companies in the Nifty have just come off a great week where they have rallied between 3-13% this week. Share prices of these companies have received a boost thanks to good numbers for Q1 FY22, a solid outlook for the rest of the year and some help from China.
Tata Steel Ltd (NS: TISC ) gained 11.35% this week to close at Rs 1,435.25. JSW Steel Ltd (NS: JSTL ) closed at Rs 737.45, up 2.87%. Hindalco Industries Ltd. (NS: HALC ) gained 13.31% to close at Rs 447.8 while Steel Authority of India Ltd. (NS: SAIL ) closed at Rs 142.1 and gained 10.67%. Vedanta Ltd (NS: VDAN ) gained 10.87% to close at Rs 301.45. The Nifty Metal that includes all these stocks closed higher by 7.07% this week.
JSW Steel reported a record profit of Rs 5,904 crore and beat estimates. Revenue rose 145% as well. Vedanta reported 314% increase in PAT (profit after tax) to Rs 4,280 crore. However, both stocks came under pressure after releasing their earnings.
China’s decision to impose an export duty of 10-25% from August 1 on steel products, including hot-rolled coils, gave a shot in the arm to metal stocks, especially steel companies. China’s decision was taken in line with the country’s policy to reduce pollution.
Experts say that there is confidence in the market that the rally could continue on for a little longer.
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