Mumbai: On Thursday, heavyweight metal stocks such as Hindustan Copper, Vedanta, SAIL, and Adani Enterprises witnessed strong buying in the stock market. The surge came after a sharp overnight rise in global base metal prices. Investors were optimistic as rising metal prices boosted earnings prospects for these companies.

Dollar Weakness Drives Global Markets

The recent rally is closely linked to the weakening of the US dollar. The US Dollar Index fell 0.49 percent to 98.86, marking its ninth consecutive session of decline and reaching its lowest level since October 29. The drop in the dollar makes commodities cheaper for buyers in other countries, increasing demand for metals. This global trend positively affected metal stocks in India.

A major factor behind the dollar’s weakness was the latest US payroll data, which showed that American companies laid off the highest number of employees in November since early 2023. This created concerns about the US economy, adding pressure on the dollar and benefiting commodity markets worldwide.

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Copper Prices Lead the Surge

The rally in metal stocks was largely driven by record-breaking increases in copper prices. On the London Metal Exchange (LME), the three-month benchmark copper price reached USD 11,541 per ton, its highest level ever. So far this year, copper prices have jumped 31 percent, the largest annual increase since 2017.

Hindustan Copper led the rally with its shares climbing 6.6 percent to an intraday high of Rs 361.80. Other metal stocks like Vedanta, Adani Enterprises, National Aluminium, SAIL, NMDC, and Dindalco Industries also gained between 0.5 percent and 1.3 percent, reflecting investor optimism.

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Outlook for Investors

The strong rise in metal stocks shows how global events and commodity price movements directly influence Indian markets. Investors are closely watching base metal prices and currency trends, as these factors impact stock performance and market sentiment.

Disclaimer: This article is intended solely for informational purposes. The Free Press Journal recommends that readers should not treat it as financial advice and should consult professional advisors before making any investment decisions.