Vedanta, Tata Steel to NMDC: Why are metal stocks rising despite the weak Indian stock market? It is explained for 5 reasons

Despite the weakening of the Indian stock market in the last three consecutive sessions, metal stocks remained under the Bulls’ radar. Among the metals majors, NMDC’s stock price has skyrocketed over 7% in a week, Vedanta’s stock has skyrocketed about 9% in the past five sessions, and Tata Steel’s stock price has risen by more than 6% in a week. JSW Steel Shares recorded an increase of nearly 6%, while India Limited’s Steel Authority (Sail) rated it over 7.50% in a week.

According to stock market experts, despite the sale in the Indian stock market for five important reasons, metal stocks are signs of China’s economic recovery, increasing demand for metals, and Indian government has said that China’s steel It rose because it imposed obligations that were contrary to the product. , the infrastructure project that will appear in the 2025 full swing after the budget, and the results of RBI’s monetary policy have reduced its port rate to 25 bps.

What is the fuel supply of Indian metal stocks?

Seema Srivastava, a senior research analyst at SMC Global Securities, said in a trigger that fueled Indian metal stocks despite weak sentiments on Dalal Street, “a variety of macro and micro-related macros related to global and Indian factors.” Due to economic factors, metal stocks are moving upwards. Globally, globally, with China’s economic recovery, supply chain disruption and increasing demand for metals, the government’s government’s steel products have been in place for China’s steel products. The issue of dumping mandatory was promoted.

An expert at SMC Global Securities said, “Based on economic growth and infrastructure development plans, the increased demand for steel in India has increased the revenue and profitability of steel companies. Industry growth.”

Regarding the reason for the metal stocks gathered on Friday, Mayank Mundhra, head of FRM-VP Risk and Research at Abans Group, said, “Indian metal stocks are a strong gathering driven by RBI’s 25 bps rate reduction on Friday. Investor confidence. Interest rate reductions have helped interest rate-sensitive sectors such as metals recover from previous declines. Lower borrowing costs have resulted in metal demand from infrastructure, automobiles and capital goods. It is expected to promote it.”

“Globally, Trump’s decision to delay tariffs in Canada and Mexico after first imposing Canada and Mexico, raises concerns by stocking up on stocks before the tariffs become fully effective. The fear of this surge in prices began to rise sharply.

Stocks to monitor on Monday

“Indian infrastructure development projects require large quantities of metal products, creating a critical market for metal companies. Companies such as TataSteel, JSW Steel and Hindalco industry have experienced significant growth in market value. Seema Srivastava from SMC Global Securities is a favourable environment for a surge in metal stocks.

Disclaimer: The views and recommendations provided in this analysis are those of the individual analyst or brokerage company, not mint. As market conditions change rapidly and individual circumstances may differ, we strongly recommend that investors consult with a certified expert before deciding on an investment.