Repo rate cut impact: After the announcement of the repo rate cut on 7 February, the shares of metal companies jumped. The Nifty Metal Index rose by 2.7 percent. Welpon Corp and Jindal Steel & Power shares jumped up to 5 percent. Repo rate cuts are considered positive for infrastructure and growth of real estate. Metal is essential raw material for these sectors, so metal shares also shine. The RBI monetary policy committee has reduced the repo rate from 0.25 percent to 6.25 percent. The repo rate has been cut for the first time since May 2020.
Welspun Corp climbed 5.5 percent on NSE. Jindal Steel & Power shares showed up to 5 percent from the last closed price on NSE and the price went up to Rs 848.40. Similarly, Tata Steel rose up to 4 percent and went up to Rs 137.80.
Good boom in these shares also
The stock of JSW Steel, NMDC, Vedanta showed up to 3 percent. The shares of Adani Enterprises and SAIL saw 2.7 percent, National Aluminum Company shares 2.6 percent, Hindalco and NMDC shares saw 2 percent.
In addition to the repo rate, what other reasons the metal stocks shines
In addition to the reduction in repo rate, other reasons for the rise in metal shares are weakness in the rupee, the boom in real estate stocks and the Director General of Trade Remedies (DGTR) on a variety of steel imports. However, this investigation brokerage ambit believes that given the previous trends, it can only be done until the third quarter of FY 2026. The Indian currency rupee fell 16 paise on February 6 to close at the lowest level of 87.59 per dollar.