Metal stocks zoom up

The top five gainers on the BSE right since the opening bell today are metal stocks. Hindustan Copper is leading the pack, up 10% at Rs.78.20; Tata Steel hit a new 52-week high at Rs.174.65; NALCO soared 8% to Rs.87.90; MMTC rose 9.5% to Rs.68.70 and Hindalco is up 5.5% at Rs.256.35. Mishra Dhatu Nigam breached the 10% UC, hitting a new high at Rs.168.60.

Apart from oil prices going to $74/barrel, metal prices are on the boil. There is growing worry that a further increase in sanctions by USA on Russia, the second largest exporter of nickel, will lead to a run on the metal prices.

Aluminium prices are already at a high after US imposed sanctions against United Co.Rusal, the second largest aluminium maker in the world, after China. In fact the price of aluminium has risen more than 25% in last 10 sessions. There is virtually a mad scramble to secure supplies, not only of aluminium but of other metals too.