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Sensex jumps more than 300 points, the company Nifty50 exceeds 18,550;  Hul gains 2% after second quarter results

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Sensex jumps more than 300 points, the company Nifty50 exceeds 18,550; Hul gains 2% after second quarter results

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The metal sector would outperform in the coming months, says Srivastava of Indiacharts.com

A very good move in leaders like National Aluminum Company, Hindalco Industries, Vedanta, is because aluminum prices hit 52-week highs all of last month, said Rohit Srivastava, founder and strategist of Indiacharts.com.

The good news, though in recent days, is that the rebound in commodity prices has become a bit more widespread, he said.

“So he started to get copper to participate because copper was the strongest last year and then it actually went into a prolonged consolidation mode for the last four or five months and didn’t really participate in the move. It also saw a fairly deep correction in, for example, lead prices, and in fact the most important, the best performing sector last year was steel. In fact, there has been a drop in steel and iron ore prices since the China issue that had suppressed most of them came along. So the good news is that we are starting to see that momentum again, ”added Srivastava.

“So copper prices went up, steel prices went up a little bit, they still haven’t gotten back to where they were, but at least you have that rally and you have a feeling that maybe they have bottomed out. You’re seeing new highs for zinc, you’re seeing new highs for nickel. So all together, and the last but not least in the observation is the dollar itself, “he said.

“So the fact that the dollar index has revamped, I think for the last three or four days it gives me the feeling that possibly the longer-term bearish dollar market has resumed. If that’s true, then these commodity price increases that we are seeing right now could continue in the months to come, perhaps until the end of the year, “he said.

So your feeling is that the metal sector continues to outperform not only the aluminum and copper names, but possibly also gain share from steel and the rest of the segments within the sector. It should grow into a broader grassroots movement and it might even continue to do so regardless of what Nifty is doing. “So Nifty can go his own way, but if there is a rise in commodity prices and a falling dollar environment, then the metals sector will outperform in the coming months,” explains Srivastava.

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Sensex jumps more than 300 points, the company Nifty50 exceeds 18,550; Hul gains 2% after second quarter results

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