Commodity Online
MUMBAI: Steel stocks lead the markets towards an upside rally as benchmark Sensex extended gains today with increased buoyancy by the investors owing to a promising budget by the newly formed government.

On Tuesday, the Union Finance Minister, Pranab Mukherjee had announced to present budget by the beginning of the month of July. The stock market had surged by over 500 points on expectation of industry friendly budget.



Today, the benchmark index, Sensex rose significantly to 14284 points with gains of over 1.2% or 175 points during the afternoon trading session. The sectoral index, BSE Metals was trading with gains of over 3% at 10,604 points.

Leading metal stocks included steel heavyweight like public sector major, Steel Authority of India (SAIL), JSW Steel Ltd and Tata Steel Ltd. JSW Steel Ltd surged to Rs.558.25 with a rise of over 8%. SAIL recorded a rise of close to 7% to Rs.165.15 during the afternoon trading session on the BSE. However, private sector major, Tata Steel Ltd recorded moderate rise to Rs.384 with gain of close to 3%.

The metal prices on the commodity exchange recorded a fall to Rs.24250 per MT for MCX June contract. Experts opined that with new government giving more emphasis to infrastructure development, there is a possibility of appreciation of steel prices in coming days which may further give rise to steel stocks on the bourses.

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