Five metal stocks to keep an eye on today!

On Friday morning, the headline indices Nifty 50 and Sensex opened lower and were down by 1.45%, as the war between Russia and Ukraine continues to rage for almost a week now. The Sensex was at 54,316.50 down by 786.1 points or 1.42% and the Nifty was at 16,28.25 down by 229.80 points or 1.39%.

BSE Metal index is trading in the green territory at 22,027,76, up by 0.02%. Top gainers of the index include Hindalco Industries, APL Apollo, Hind Zinc, Tata Steel, JSW Steel, and Jindal Steel.

The Nifty Metal index was trading at 6,203.60 down by 0.11%. The top gainers were Hindustan Zinc, NALCO, Hindustan Copper, Tata Steel and Hindalco Industries.

The metals stocks surged to 6% this week on the bourses, owing to the rise in commodity prices. Due to the ongoing war between Russia and Ukraine, the investors are worried about the supply problems of metals, especially the non-ferrous metals like aluminium, steel, and nickel as Russia is the world’s second-largest aluminium producer, and among the largest Nickel producers too. It produces about 6% of the world’s aluminium and about 7% global nickel mine supplies. Moreover, Russia and Ukraine together, contribute to nearly 15-16% of global steel exports. This along with the Fed’s rate hikes, and a sharp cut in aluminium production in China, led to metal stocks in the domestic market to surge, with chances of limiting the Russian exports to aid Indian steelmakers to capture the export market share.

Stocks to watch out for are – Tata Steel, Hindalco Industries, Vedanta, NALCO, Hindustan Zinc, and JSW Steel.

Tata Steel Limited: On March 2, 2022, Tata Steel Advanced Materials (TSMAL), an indirect wholly-owned subsidiary of Tata Steel, has executed a share purchase cum shareholders' agreement for the acquisition of a 90% equity stake in Ceramat Pvt Ltd (CPL). Ceramat was incorporated on November 2, 2021, for the purpose of advanced ceramics with a health care focus. CPL is jointly promoted by Sabyasachi Roy and Tushar Gothi. As of date, CPL has not commenced operations. According to chairman N Chandrasekaran, Tata Steel is all set to double its current steel production capacity in India from 20 million tons to 40 million tons in the next 10 years.

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