Metal stocks closed with substantial gains on Thursday, outperforming the rally in benchmark indices Sensex and Nifty that gained almost 1 percent. JSW Steel was the top gainer at 7.79 percent, followed by Jindal Steel at 5.75 percent, Vedanta at 4.68 percent and Hindustan Zinc at 4.20 percent. However, on the flip side, HSBC has projected India's December quarter (Q3) GDP growth rate at a low 5 percent.
The BSE metals index closed 3 percent higher while the BSE Sensex gained 245 points to end at 26,878 and the NSE Nifty closed 83 points higher at 8,274.
The rally in metal stocks was probably due to the rise in copper prices in the global commodity markets.
The BSE Bankex also closed 1.35 percent higher, led by Yes Bank, Federal Bank and IndusInd Bank.
The gains on Sensex were led by Adani Ports, Tata Steel, Tata Motors and ONGC.
HSBC on India's December quarter growth
In line with the PMI surveys for November and December that revealed contraction as a result of Prime Minister Narendra Modi's demonetisation decision, HSBC said in a note that the world's fastest-growing economy slowed down to 5 percent growth rate in the December quarter.
""We expect GDP to grow 5.0 per cent in the October-December quarter and 6.0 per cent in the January-March quarter, about 2 percentage points lower than we had expected before the demonetisation was announced," PTI quoted a HSBC research note as saying on Thursday.
Gold, silver gain
The day saw gold and silver close with gains on the back of an uptick in demand; gold prices ended Rs 180 higher at Rs 28,730 per 10 gm while silver gained Rs 350 to close at Rs 40,600 per kg.
RBI may not cut repo rate
In view of the existing global uncertainty, the Reserve Bank of India (RBI) is likely to keep the repo rate unchanged at 6.25 percent when the MPC meets on February 8 for its monetary policy meeting.
"Going forward, we expect RBI may not oblige with a rate cut in February as global uncertainties may again play spoilsport," State Bank of India said in its research note Ecowrap.
