Name of Post: Metal Stocks Surge Up to 7% as RBI’s Repo Rate Cut Fuels Infrastructure & Real Estate Growth

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On February 7th, the first Monetary Policy Committee (MPC) meeting under the newly appointed Reserve Bank of India (RBI) Governor, Sanjay Malhotra, announced a repo rate cut of 25 basis points to 6.25%, aiming to stimulate economic growth amid slowing momentum. This marks the first rate cut by the RBI in five years, following two years of unchanged rates.

The rate reduction aligns with the government’s recent move to cut personal income tax, which is expected to drive consumer spending and economic expansion. However, market reactions remained volatile following the announcement.

The Nifty Metal index had climbed nearly 2.73% to 8,591.75, reflecting increased investor confidence. The rate cut is perceived as a positive catalyst for the infrastructure and real estate sectors, fueling demand for raw materials and driving up metal stock prices.

Top Metal Stocks Rallying Post-Repo Rate Cut

1️⃣ Jindal Steel & Power Limited (JSPL)

  • Market Cap: ₹86,294.4 crore
  • Surge: 4.8% on BSE
  • Intraday High: ₹848.6
  • One of India’s leading steel producers, with a strong presence in mining and power generation, JSPL saw a significant price surge.

2️⃣ Tata Steel Limited

  • Market Cap: ₹1.71 lakh crore
  • Surge: 4% on BSE
  • Intraday High: ₹137.75
  • Asia’s first private integrated steel company, established in 1907, saw a sharp increase amid improved industry sentiment.

3️⃣ Welspun Corp Limited

  • Market Cap: ₹20,814.8 crore
  • Surge: 7% on BSE
  • Intraday High: ₹800.45
  • A global leader in large-diameter pipe manufacturing, Welspun benefited from expectations of infrastructure-driven demand growth.

4️⃣ JSW Steel Limited

  • Market Cap: ₹2.38 lakh crore
  • Surge: 3.2% on BSE
  • Intraday High: ₹978.55
  • The flagship business of the $23 billion JSW Group saw gains due to positive sectoral trends.

 

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Other Gaining Metal Stocks

  • Vedanta Limited (up 3%)
  • National Aluminium Company (NALCO) (up 3%)
  • Steel Authority of India Limited (SAIL) (up 2.6%)
  • Hindalco Industries (up 2.5%)
  • Hindustan Copper (up 2%)
  • Jindal Stainless Limited (up 2%)

 

Conclusion

The RBI’s repo rate cut has acted as a major trigger for metal stocks, driven by higher infrastructure spending and real estate activity. As demand for steel, aluminum, and other key raw materials rises, investors remain optimistic about the sector’s short-term and long-term growth potential.

 
 
 

 

 

 

 

 

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Metal Stocks Surge Up to 7% as RBI's Repo Rate

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