JSW Steel, Tata Steel, other metal stocks surge up to 4% after RBI's surprise 50 bps rate cut

Metal stocks strongly surged on June 6 after RBI reduced its policy repo rate by 50 basis points, higher than the expected 25 bps rate cut. The sharp rise in the share prices pushed the Nifty Metal index 1.4 percent higher teto hover around 9,360 in the afternoon.

The rally in metal stocks is in line with several rate sensitive sectors like banks and realty, as well as the overall stock market. Sensex surged nearly 800 points to hover around 82,240, while the Nifty 50 index jumped over 1 percent to cross 25,000.

JSW Steel was the top gainer on the Nifty Metal index, soaring over 4 percent to trade at Rs 1,010 per share. Jindal Stainless Steel shares followed, jumping over 3 percent. Hindustan Zinc shares meanwhile were up nearly 2 percent, buoyed by the bull run in silver prices.

Welspun Corp, National Aluminium Company (NALCO), Hindustan Copper, NMDC and Adani Enterprises shares were up over 1.6 percent, while Jindal Steel & Power, Hindalco and Tata Steel were up over 1 percent each. Steel Authority of India (SAIL) and Vedanta were meanwhile trading with marginal gains.