Shares of major metal companies rose as much as 3 per cent in morningtrade on the Bombay Stock Exchange (BSE) on Monday, driven byspeculation of a price hike during the peak festival season.
Therally was led by aluminium producer Hindalco, which surged 3.4 per centto touch a one-year high of Rs 197.40 on BSE, becoming the topperformer on the 30-share benchmark Sensex.
"The investorconfidence is high in metal stocks, as there is a buzz in the marketthat the metal companies may raise their product prices to cash in onthe festive season," Ashika Brokers Research Head, Paras Bothra, said.
Besidesaluminium, other metal counters were also trading in positive terrainon BSE. Private steel-maker Tata Steel rallied 2.3 per cent to touch aone-month high of Rs 644.
Similarly, Sterlite Industries, too, gained 1.91 per cent to Rs 175.65 at the start of the session.
Theupswing in metal stocks led to the metal index on the BSE emerging thebiggest gainer among the thirteen sectoral indices in early trade,having risen 280 points to 16,931.26.
Hindustan Zinc (1.8 percent), Jindal Steel (1.28 per cent), Nalco (0.88 per cent) and SAIL(0.83 per cent) were among the other gainers in the metal pack.Meanwhile, the Sensex was also trading firm at 20,209.87, up 164.69points from the previous close.