InvestorQ : Why did metal stocks gain so sharply on Wednesday, especially stocks like Tata Steel and Hindalco?
diksha shah made post

Why did metal stocks gain so sharply on Wednesday, especially stocks like Tata Steel and Hindalco?

Answer
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Arusha Ray answered.
1 month ago


The odds were loaded in favour of metal stocks on 05 August and the likes of Tata Steel and Hindalco gained close to 8-10% in a single day. Metal stocks showed a smart bounce on hopes that a sharp demand revival in China and Europe would stimulate prices on the LME. LME prices are already at a 6-month high, giving more power to the rally.

Most of the high frequency Chinese indices like PMI and industrial production have shown good traction despite China being the first to be struck by COVID-19.Europe has also seen a positive turn in industrial output indicating that the industrial momentum was still expansionary in China and Europe. However, such a momentum may be hard to sustain.