Copper, aluminum prices rise; metal stocks in focus

The markets look attractive for metal stocks in 2018, in view of the rising metal prices in the international market. Propelled by the increase in material prices and production cut in China, aluminium prices recorded a notable high on the global front.

In accord with aluminium prices, copper prices also charted highs on the back of an increasing demand from power and construction industry boosted by the growing inclination towards electromobility. These hike in prices have successfully trickled down to bloat the prices of other metals as well, such as zinc and lead.

To fulfill Indian government's vision of 100  per cent  electric mobility by 2030, top Indian automakers are buckling up to launch electric vehicles. There is also a growing possibility that the government would provide some incentives to boost e-mobility which will hike the demand for base metals in the long run.

With positive developments in the sector, metal stocks are at a good spot to gain in the new year. Metal majors such as Hindalco Industries, Vedanta Limited and Hindustan Zinc have recorded 10.46  per cent , 7  per cent  and 3  per cent  gains, respectively in December 2017, till date.

Whereas, Hindustan Copper recorded a 5  per cent  surge in its share price in the intraday trade on Friday. Other major metal stocks including NMDC, National Aluminium, Jindal Steel and alike are likely to remain in the limelight.