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    Metal stocks ring loud with China easing Covid curbs

    Synopsis

    The Sensex and Nifty advanced by 0.6% each, their second day of gains after taking a beating last week when they had fallen by 2.7% each. Shares of Jindal Steel gained 9% with cash volumes expanding five times their last one-month average and traders squaring off bearish bets.

    Stock IdeasiStock
    Shares of Tata Steel advanced 5.9%, while those of state-owned SAIL advanced 5.4%. JSW Steel's shares rose 4.47%.
    Mumbai: Shares of Indian mining and metal companies closed higher by up to 10% on Tuesday as China's plan to ease Covid-19 restrictions spurred hopes of demand recovery from the world's top consumer of metals.

    The Nifty Metal Index surged 4.23%, lifting benchmark indices for the second straight day in yet another low-volume session.

    The Sensex and Nifty advanced by 0.6% each, their second day of gains after taking a beating last week when they had fallen by 2.7% each. Shares of Jindal Steel gained 9% with cash volumes expanding five times their last one-month average and traders squaring off bearish bets.

    "Any news about China reopening its economy bodes well for metals and commodities space," said Siddharth Khemka, head of research (retail) at Motilal Oswal Financial Services. "It would lead to a spurt in economic activity in the region and a revival in demand for commodities, thereby easing the downward pressure on demand and prices."

    Shares of Nalco climbed 6.5% while those of Hindalco, the world's largest aluminium rolling company, advanced 6.3% with high volumes.

    On Tuesday, Chinese authorities announced they will no longer subject inbound travellers to quarantine from January 8, a move seen to be a step further away from its strict 'zero-Covid' policy that saw widespread protests from Chinese citizens last month.

    Asian and European equity markets cheered the announcement, with key indices in both continents rising by 0.7% to 1.3%.

    China's National Health Commission on Monday said that from January 8, people arriving in China will only be required to show a Covid-19 negative test report from a sample taken within 48 hours of departure. The current requirement is eight days of isolation--five days at a designated quarantine hotel, or central facility, followed by three days at home.

    Shares of Tata Steel advanced 5.9%, while those of state-owned SAIL advanced 5.4%. JSW Steel's shares rose 4.47%.




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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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