With Donald Trump signaling the signing of the trade deal between two giant economies, China and the US on January 15, 2020, the metal stocks gained the upper hand again last Friday. On NSE, Hindustan Zinc rose over 4.2%, Coal India gained 4%, followed by SAIL and Vedanta shares that traded 2.5% higher. Shares of Tata Steel and Welspun Corp shares were up nearly 2%. Almost all metal sector companies were trading in the green and observed increase in their shares.
President Trump said on Thursday that the US would sign the first phase of a pending trade deal with China probably on January 15, in a move to stop a near two-year-old trade war between the world's largest economies. Nifty metal index, Welspun Corp share price climbed to its 52-week high during the session and after the announcement from the President. Shares of APL Apollo Tubes, Ratnamani Metals & Tubes, Hindalco Industries Limited were trading mere points away from their respective 52-week highs.
The BSE metal index has dipped 4.75% in a year and 32% in the last 2 years. Similarly, the NSE metal index has deteriorated 4.70% in one year and 31.55% in the last 2 years.
With the signing of the deal, there looks some hope for the metal sector after the slump.