Steel Stocks gain in today Sensex Rise

The Sensex was back to its winning ways on a steep rise in metal stocks, which rallied sharply after steel makers reported good April numbers. The Sensex advanced 164 points to close at 12,117. Tata Steel said that its hot metal production in April was up 30 per cent from a year earlier while state-run SAIL recorded 28 per cent jump in its output for the same month. Another major steel manufacturer JSW Steel said that it is seeing strong growth in rural demand and expects domestic demand to be firm in FY10.Metal stocks led the rally in the markets today. The BSE metal index soared 8.2 per cent on huge gains in Ispat Industries
, Hindustan Zinc, JSW Steel and Sterlite Industries
. The stocks rose more than 12.5 per cent each.
“The market is in the fair value zone of 3500-3700 levels. Metal stocks have jumped on the back of rise in demand for metals. In the last quarter of 2008, what we saw was demand postponement and not demand destruction in the metal space,” said investment advisor Rajesh Jain.
The BSE realty index advanced 1.9 per cent and the BSE bankex surged 1.8 per cent. In the realty space, Phoenix Mills, Orbit Corp, HDIL and Unitech, up over 4 per cent each, were the biggest gainers.
In the Sensex pack, 19 stocks gained while 21 counters ended lower. Sterlite Industries zoomed 13.7 per cent and was the top gainer in the group. Hindalco and Tata Steel were the other gainers in the packs. These stocks gained more than 8.7 per cent each. M&M and ACC, however, were the major losers in the group, down 2.4 per cent.
“Better than expected corporate results and a change in investor and business confidence is helping the market upmove. Huge momentum is being seen in mid-cap counters also,” said Nipun Mehta, ED & Head India, SG Private Banking.
The BSE mid cap index surged 2.7 per cent and the BSE small cap index gained 2.6 per cent. Global stocks markets rose today ahead of the announcement of the results of the U.S. government's stress tests on the country's biggest banks.
Japanese shares led the Asian rally, with the Nikkei 225 index surging 408.33 points, or 4.6 percent, to 9,385.70 — a six-month high — as investors returning from a three-day holiday played catch up with gains on other regional markets.Hong Kong's Hang Seng was up 383.32, or 2.3 percent, to 17,217.89 and South Korea's Kospi inched 0.6 percent higher at 1,401.08.