The rally in metal stocks could be fuelled by China’s production cut in both steel and aluminium, said Amit Dixit, research analyst at Edelweiss Institutional Equities on Wednesday.
“Specifically talking about today’s rally, yesterday there was a statement in China by the minister - China’s 14th 5-year plan will be unveiled by the end of this week - and it talked about production cut in both steel and aluminium. Therefore, today’s rally is driven by this factor,” Dixit told CNBC-TV18.
Metals are amongst the top Nifty gainers after the dollar index takes a breather and US treasury yields too take a backseat.
Also, watch the accompanying video where CNBC-TV18’s Nigel D’Souza explains why metal stocks are doing well.