Market Performance
The Nifty Metal index ended its three-session losing streak on April 8, with several metal stocks registering gains. The recovery followed reports suggesting that China may introduce fresh economic stimulus measures to boost domestic demand. This development came despite ongoing global trade tensions sparked by newly imposed US tariffs.
Global Developments Impacting the Sector
Metal shares had earlier declined due to rising concerns over a potential US recession and the escalating trade conflict. On April 7, global equity markets saw significant declines, with the Nifty Metal index dropping close to 7 per cent. However, investor sentiment improved after news emerged that China might plan to accelerate its stimulus programs in response to tariff-related economic pressures. Additionally, a weaker US dollar contributed to the positive shift in the market outlook.
Company Movement
Lloyds Metals and Energy and Hindustan Copper led the gains on April 8, each rising more than 2 per cent. JSW Steel and Adani Enterprises also saw over 1.5 per cent increases, while APL Apollo Tubes traded approximately 1 per cent higher.
Tata Steel showed marginal gains following a 10 per cent drop in the previous session, during which the stock briefly hit its lower circuit limit.
Other stocks trading with slight gains included NMDC, National Aluminum, and Hindustan Zinc.
Despite the broader recovery, some companies continued to face losses. Welspun Corp declined more than 4 per cent to ₹759 per share. Jindal Stainless Steel, Steel Authority of India (SAIL), Vedanta, and Hindalco traded slightly lower.
Summary
The metal sector recovered after three days of decline, supported by expectations of stimulus measures from China. These developments came amid ongoing concerns over a global trade war and the possibility of an economic slowdown in the US. While most metal stocks saw gains, a few continued to trade in the red, reflecting a cautious investor outlook.
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