Metal Stocks Rally as China’s Services PMI Slips — NMDC, Hindalco, Tata Steel Among Top Gainers

Market Performance

Metal stocks experienced a notable increase in trading on July 3, driven by macroeconomic indicators from China. The Nifty Metal index rose 0.6%, reaching around 9,756, supported by broad-based gains across major Indian metal companies.

This marked the index’s third straight day of gains, registering a total increase of 2.3% during the period.

Main News

The rally in metal stocks followed the Caixin/S&P Global Services PMI in China, which fell to 50.6 in June, down from 51.1 in May, marking a nine-month low.

The slowdown in services activity indicated muted demand in China, the world's largest consumer of metals. This development, along with a sharp fall in the US Dollar Index, supported Indian metal shares.

Expectations of improved competitive positioning for Indian metal producers further buoyed the sentiment.

Company-Wise Stock Movement

NMDC

• Stock Movement: Gained 2%
• Current Price: Rs 69

Hindalco

• Stock Movement: Rose over 1%
• Current Price: Around Rs 706

Jindal Steel and Power (JSP)

• Stock Movement: Increased nearly 1%

Jindal Stainless Steel

• Stock Movement: Gained nearly 1%

National Aluminium Company (NALCO)

• Stock Movement: Up 0.8%

Tata Steel

• Stock Movement: Up 0.8%

Hindustan Copper

• Stock Movement: Gained over 0.3%

Hindustan Zinc

• Stock Movement: Gained over 0.3%

Steel Authority of India (SAIL)

• Stock Movement: Marginal gains

Adani Enterprises

• Stock Movement: Traded in the green with a slight increase

Lagging Stocks

Not all metal stocks joined the rally. A few stocks registered mild declines:

• JSW Steel: Hovered in red
• APL Apollo Tubes: Slight losses
• Welspun Corp: Traded lower
• Vedanta: Ended in the red

Company Overview

The key companies that influenced the metal index movement include:

• NMDC: A leading iron ore producer
• Hindalco: Major aluminium manufacturer
• Tata Steel, JSW Steel, SAIL: Integrated steel giants
• Vedanta, Hindustan Zinc, Hindustan Copper: Base metal producers
• NALCO: Key player in the aluminium sector
• Jindal Group companies: Strong presence in steel and stainless steel
• APL Apollo Tubes, Welspun Corp: Pipe and tube manufacturers
• Adani Enterprises: Diversified presence including commodity trading

Summary of the Article

On July 3, Indian metal stocks surged as China's services sector showed signs of slowing growth, boosting investor sentiment in domestic metal companies. The Nifty Metal index rose 0.6%, extending its winning streak to three sessions with a total gain of 2.3%.

Top performers included NMDC (+2%), Hindalco (+1%), and Jindal Group companies, while a few, such as JSW Steel and Vedanta, lagged slightly behind.

Investors tracked China's PMI data and a weaker US dollar, both of which favored Indian metal exporters.