Nifty Metal rises 3% after US, China agree on interim deal

The Nifty Metal surged almost 3 percent in trade on Friday with the shares of Hindustan Copper, Vedanta, SAIL, Hindalco, Tata Steel, JSW Steel rising between 2 and 4 percent. Out of the 15 companies on the index, 14 were trading in the green.

At 11.09 am, the Nifty Metal index was trading higher by 2.58 percent at 2,634.95, after opening at 2,620.

So far this year, the Nifty Metal index has lost almost 17 percent, while the three-year return on the stock, too, is negative by over 7 percent.

The index advanced as the outlook for metal companies improved after US President Donald Trump approved an interim trade deal with China. "Getting VERY close to a BIG DEAL with China. They want it, and so do we!" Trump tweeted.

The development comes ahead of Washington's scheduled imposition of fresh tariffs on Chinese goods from Sunday.

A wave of trade euphoria had already lifted Wall Street to record highs. Reuters reported the United States has agreed to reduce some tariffs on Chinese goods and delay a tranche of tariffs as part of the deal.

China has also reportedly agreed to make $50 billion in agricultural purchases in 2020 as part of the deal.

Besides, Myron Brilliant, the US Chamber of Commerce's head of international affairs, who has been briefed by both the Trump administration and China, said: "We're close to a deal".