The BSE Metal index was up 1.42% to 16,007.52 and was the second best performer among the sectoral indices on the BSE. It outperformed the Sensex, which was up 0.27% to 17,372.46
The BSE Metal index outperformed the market over the past one month till 17 October 2009, rising 8.94% as compared to the Sensex's 3.68% rise. It had also outperformed the market in the past one quarter, surging 41.77% as compared to the Sensex's return of 17.50%.
Sterlite Industries (up 0.32%), Steel Authority of India (up 2.78%), JSW Steel (up 0.86%), Hindalco Industries (up 2.71%), Tata Steel (up 1.96%), Jindal Saw (up 1.77%), Hindustan Zinc (up 1.50%), Jindal Steel & Power (up 1.26%), gained.
Metal prices surged on the London Metal Exchange (LMEX) 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.
Shares of Tata Steel rose 8.12% in one month to 17 October 2009 after 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 gained 14.47% in one month to 17 October 2009 after reporting 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