Metal shares rally; Hindustan Copper, Hindalco, Vedanta up over 5%

Shares of metal companies rallied by up to 13% in early morning trade on Thursday on higher global commodity prices.
Hindustan Copper, National Aluminium Company (Nalco), Hindalco and Vedanta from the Nifty Metal index were up 5% to 13% on the National Stock Exchange (NSE) in intra-day trade. Steel Authority of India, JSW Steel, Hindustan Zinc, MMTC and Jindal Steel & Power were up 2% to 4%.

At 10:53 am; the Nifty Metal index, the largest gainer among sectoral indices, was up 3.3% as compared to 0.39% rise in the Nifty 50 index.

LMEX, a gauge of six metals traded on the London Metal Exchange (LME) was up 3% to 3,494, hitting multi-year high on Wednesday. LMEX has surged 9.4% in past 10 trading sessions.

London aluminium futures rose to their strongest level since 2011 on Wednesday amid growing worries over tighter supply, while nickel surged more than 4% to a three-year peak. U.S. sanctions on major aluminium producer Rusal have pushed aluminium prices by more than 20% since the sanctions began earlier this month, the Reuters report suggested.