On February 7th, the first Monetary Policy Committee (MPC) meeting under the new Reserve Bank of India (RBI) Governor, Sanjay Malhotra, cut the central bank’s repo rate by 25 basis points to support the economy amid slowing growth.
The repo rate was lowered to 6.25 percent, meeting expectations, though market reactions remained volatile. This rate cut follows the government’s recent decision to reduce personal income tax, aimed at boosting consumption.
This marks the RBI’s first rate cut in five years, since May 2020, after holding the rate steady for two years. By 01:05 p.m., the Nifty Metal index had risen nearly 2.73 percent, reaching 8,591.75, driven by a surge in stock prices.
A reduction in the repo rate is seen as beneficial for the growth of infrastructure and real estate sectors, with metal stocks benefiting from the increased demand for raw materials used in these developments.
Here are a few metal stocks that jumped up to 7 percent following the repo rate cut:
1. Jindal Steel & Power Limited
With a market cap of Rs. 86,294.4 crores, the shares of one of the India’s leading steel producers with significant presence in sectors like mining and power generation moved up nearly 4.8 percent on BSE to reach an intraday high at Rs. 848.6, during the trading session of Friday.
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2. Tata Steel Limited
With a market cap of Rs. 1.71 lakh crores, the shares of Asia’s first integrated private steel company set in 1907 moved up nearly 4 percent on BSE to reach an intraday high at Rs. 137.75, during the trading session of Friday.
3. Welspun Corp Limited
With a market cap of Rs. 20,814.8 crores, the shares of one of the largest manufacturers of large-diameter pipes globally moved up nearly 7 percent on BSE to reach an intraday high at Rs. 800.45, during the trading session of Friday.
4. JSW Steel Limited
With a market cap of Rs. 2.38 lakh crores, the shares of the flagship business of $23 billion JSW Group moved up nearly 3.2 percent on BSE to reach an intraday high at Rs. 978.55, during the trading session of Friday.
Other stocks that saw an increase in their share prices include Vedanta (up 3 percent), National Aluminium Company (up 3 percent), SAIL (up 2.6 percent), Hindalco (up 2.5 percent), Hindustan Copper (up 2 percent) and Jindal Stainless Limited (up 2 percent).
Written by Shivani Singh
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