By Malvika Gurung
Investing.com -- With the ongoing mounting geopolitical tensions between Russia and Ukraine, a fresh set of Western sanctions have led to oil prices surging over 5% on Monday, giving rise to fears of supply disruptions of non-ferrous metals and soaring energy prices.
As a result, the sectoral index Nifty Metal has zoomed over 4%, trading 4.16% higher at 2:15 pm on Monday, outperforming its sectoral peers and the headline indices.
Barring Welspun Corp (NS: WGSR ), all the 14 other metal scrips on the sectoral index were trading higher in a volatile session.
Hindalco (NS: HALC ) was the top performer, trading 7.8% higher, followed by Jindal Steel & Power (NS: JNSP ), Tata Steel (NS: TISC ) and JSW Steel (NS: JSTL ), up 4.4-5.4% higher. State-owned steel maker SAIL (NS: SAIL ) surged almost 4% and Vedanta (NS: VDAN ) gained 2.83% at the time of writing.
Hindalco recorded a new 52-week high on Monday, at Rs 578.25/share.
Brokerage firm Edelweiss (NS: EDEL ) expects the ongoing geopolitical disturbances to further boost the prices of these commodities.
“If Russian exports are curtailed, coupled with the ongoing maintenance activities at Far East Mills and China focusing on reducing steel exports, we are likely to see Indian steel mills such as JSW Steel and Tata Steel gaining in the export market”, noted the brokerage.
Besides, London aluminium futures hit record high on Monday, stated Reuters, led by the fresh sanctions, including blocking select Russian banks from the SWIFT payment system.
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