Last Updated : 20 October 2009 at 11:45 IST

Metal stocks boom on BSE, Hindalco up 4%

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MUMBAI (Commodity Online): Metal stocks traded with positive mark on the Bombay Stock Exchange (BSE) after a gauge of metals traded on London Metal Exchange (LME) jumped by 3.16% to 3024.80 on Monday.

The sectoral index, BSE Metals gained 1.5% to 16014 points in the morning trading session today. Meanwhile, the Sensex was trading at 17370 points up 0.27% in a choppy trade.

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Leading metal stocks including Sterlite Industries was trading at Rs.850 up 0.8%, Steel Authority of India Ltd (SAIL) (BOM: 500113) was trading at Rs.193 up 3.6%, while JSW group company, JSW Steel (BOM: 500228) was trading at Rs.934.40 up 1.34%.

Birla group major, Hindalco Industries Limited (BOM: 500440) rose close to 4% to Rs.139.60 in the morning trading hour on the BSE today, while steel majors including Tata Steel Ltd (BOM: 500470) was trading at Rs.577 up 2.5%, Jindal Steel & Power Ltd (BOM: 532286) was trading at Rs.708 up 1.16% today.

Metal prices surged on the London Metal Exchange (LME) after the US dollar tumbled to 14-month lows against the euro, drawing investment funds into commodities.

Back home, metal shares have been on an uptrend recently after most of the metal companies announced good sales figure for Q2 September 2009.

Tata Steel’s steel sales from its Indian operations rose 19% to 1.46 million tonnes in Q2 September 2009 over Q2 September 2008. Steel sales rose 21% to 2.88 million tonnes in April-September 2009 over April-September 2008. Sales of long products, used in construction, jumped 49% in the same period.

JSW Steel reported 54% rise in crude steel production to 15.39 lakh tonnes units in Q2 September 2009 over Q2 September 2008. Production of flat rolled products rose 28% to 9.23 lakh tonnes and long rolled products jumped 216% to 2.17 lakh tonnes in Q2 September 2009 over Q2 September 2008. The company has achieved the highest ever-quarterly production, JSW Steel said in a filing with BSE.

Tata Steel will announce its Q2 September 2009 results on 27 October 2009. Steel Authority of India and Hindustan Zinc will unveil their Q2 September 2009 results on 22 October 2009. National Aluminium Company will report its Q2 results on 30 October 2009 and Hindalco is scheduled to announce its Q2 earnings on 31 October 2009.