The Nifty Metal Index has surged significantly since November, delivering 11.6% year-to-date returns. In comparison, the Nifty 50 and Nifty 500 have yielded 2.7% and 5.7%, respectively. Despite global headwinds, metal companies with stable cost structures can prove effective long-term bets amid strong domestic demand. Should you invest in metal stocks now?
After gaining 16-25% over the last month, shares of both Hindalco Industries and National Aluminium Co tested their lifetime highs on Friday. Shares of Vedanta, the countrys largest producer of the metal, have jumped nearly 48% in a month and are at their highest level in two years.
In Wednesdays trading session, the following five stocks witnessed a build of fresh long positions. Lets first understand how this conclusion is reached whether the stock has seen a buildup of fresh long position or not.
Vishal Malkan recommends Canara Bank and Cummins India in the banking sector. In the metals sector, Jindal Steel and Nalco are favored picks. For potential gains, within the telecom sector, he will prefer Indus Tower to Bharti Airtel, Voda Idea or Jio. He is also advising a cautious approach to small and midcap indices.