India

Metals, energy stocks drive Indian stocks higher as commodity prices jump

2 minute read

A woman walks past the Bombay Stock Exchange (BSE) building in Mumbai, India, January 31, 2020. REUTERS/Francis Mascarenhas/File Photo

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BENGALURU, Oct 18 (Reuters) - Indian shares hit all-time highs on Monday, led by metals and energy stocks after a rally in commodity prices, while PNB Housing fell 5% after it called off a deal with Carlyle Group.

The NSE Nifty 50 index (.NSEI) was up 0.87% at 18,498, while the S&P BSE Sensex (.BSESN) rose 0.86% to 61,832 by 0512 GMT.

The Nifty Metals index (.NIFTYMET) surged 3.9%, led by a 15% jump in Hindustan Zinc (HZNC.NS), as global zinc prices spiked on production cuts.

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The Nifty Energy index (.NIFTYENR) rose 1.9% after crude prices hit their highest in years.

"While some commodity prices have cooled down, certain metals like zinc, aluminum and copper are surging. Crude prices have also hit multi-year year highs. For now, producers will likely benefit from this surge," said AK Prabhakar, head of research at IDBI Capital.

The Nifty Bank index (.NSEBANK) gained 1.1% after India's largest private-sector lender HDFC Bank (HDBK.NS) rose over 2% to a record high after reporting a 17.6% jump in September-quarter profit over the weekend.

Shares of PNB Housing Finance Ltd (PNBH.NS) fell 5% on Monday to their lowest since early-June after the mortgage lender scrapped a fund-raising deal with a group of investors, led by private-equity firm Carlyle Group (CG.O). read more

Real estate developer Indiabulls Real Estate rose as much as 13.4% after it reported a quarterly net profit against a loss last year.

Investors are now looking to updates from industries after state-run Coal India (COAL.NS) temporarily stopped auctioning coal to non-power customers and reduced contracted supplies, potentially hurting companies in other industries as India battles one of its worst power supply deficits in years. read more

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Reporting by Nallur Sethuraman in Bengaluru; editing by Uttaresh.V

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