Commodity Online
MUMBAI: Steel stocks took a lead in the rallying markets with metal stocks surged by over 5.8% leading the Sensex to trade at 9326 levels with a rise of 395 points or 4% surge over its Friday's close.

Last week as the benchmark Sensex was struggling to make it to cross the psychological level of 9000, the markets responded positively as the index surged over 4% from its previous close. The BSE-Metal index surged the most with 5.83% to 5566.99 with a robust rise in the metal stocks.

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All the major steel companies traded firm on the BSE today. Bhushan Steel Ltd surged by over 11.5% to Rs.360. Jindal Saw Ltd and Tata Steel Ltd traded with a rise of 7% each at Rs.167.50 and 188.50 respectively. Public sector steel major, Steel Authority of India Ltd (SAIL) traded at Rs.94.60 up by over 6.5% and JSW Steel Ltd rose by 5.5% to Rs.197 during the afternoon trading hours on the BSE.

However, steel price on the commodity exchanges too remained firm at Rs.24185 per tonne for the MCX April Futures against the spot price of Rs.23330 per tonne.

The buoyancy is attributed to the stronger domestic demand for the metal. According to reports by analysts, the demand for steel in India remained better placed than other countries in the world. The steel industry is believed to be operating at 90% of the capacity utilization. The inventories were found to be reducing.

The 5% imposed duty on steel imports had prompted the domestic steel producers to keep prices in line with the global prices to make imports uneconomical.