The economy gains pace with the revival in the economic activities and increase in the demand.
In the past two weeks, the nifty metal index went up 9 percent. Additionally, the index attained the top sectoral position with a gain of 151 percent in the financial year 2021.
In the early days of FY21, the demand for metal stocks increased which indicates a revival of the economy.
Additionally, the diversion of business from china increased the production from India. Also, an increase in the demand increases stock purchase.
The rise in the metal stock maintained with the announcement by the government to invest in infrastructural development.
According to the experts, US president Joe Biden’s announcement of a $2.3 trillion investment in infrastructure resulted in increased demand.
In addition, the steel demand increased with the announcement and commencement of industrial activities after the pandemic improves economic growth.
Also, the experts anticipate an increase in demand for Indian steel companies in the future. The rise in the London Metal Exchange increases the scope for aluminum and zinc production.
The sector may grow in the coming future with an increase in the metal index. As per the technical analysis, the metal index shows resistance at 4,250. The price may not move above this level.
The index shows the successful performance when represented graphically.
The stock performance maintains in the green line in the stock charts. This means that the price of these stocks is higher than the close price of the previous day.
As per the expert advice, investors should invest in quality stocks with long-term goals.
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