Shares of metal stock gained up to 4 per cent in early trade on the Bombay Stock Exchange (BSE) on Friday, led by index heavyweights Tata Steel, Vedanta, SAIL, Jindal Steel, after US President Donald Trump approved trade deal with China.
According to a Bloomberg report, US President Donald Trump has signed a phase-one trade deal with China, halting the December 15 introduction of a new wave of US tariffs on about $160 billion of consumer goods from the Asian nation. He had also tweeted that the US and China are "very close" to signing a "big" trade deal, which pushed metal stocks higher.
Boosted by the US-China trade deal, the BSE Metal index rose over 2 per cent to trade at 9762. Among the individual stocks, Tata Steel share price gained as much as 3.76 per cent to touch an intraday high of Rs 434.50 against previous closing price of Rs 418.75.
Hindustan Copper Limited shares rallied 4.7 per cent to Rs 39.15, followed by Vedanta (4.37 per cent), Steel Authority of India (SAIL) (3.6 per cent). Shares of Coal India, Jindal Steel, National Aluminium Company and NMDC gained between 2 to 3 per cent.
During the September quarter, most of the steel companies reported decline in profit due to lower commodity prices coupled with slump in demand. The steel companies faced slowing volumes during the quarter, but they eye a recovery in the second half of the current fiscal.
Meanwhile, the BSE Sensex was trading at 40,895, up by 313 points or by 0.77 per cent, and the NSE Nifty was at 12,043, up by 71 points or by 0.6 per cent.
Edited by Chitranjan Kumar