Metal stocks in focus: Tata Steel, APL Apollo shares gain 2-6% - key triggers

Stock market on Thursday edged higher with metal stocks rallying the most. Nifty Metal index advanced nearly 3 per cent with Tata Steel, APL Apollo Tubes, JSW Steel, Welspun Corp and Vedanta advancing the most. Individually, Tata Steel shares gained over 2% to hit a day's high of 103.80 on account of the company offloading 19% equity holding in AI Rimal to Tanmia. With this, the company's shareholding in Al Rimal has come down to 51% from 70%, Tata Steel said in a statement.

"Tata Steel, through T S Global Holdings Pte Ltd, has concluded the divestment of its 19 per cent equity stake in AI Rimal to Tanmia on October 3, 2022," the company said. However, Tata Steel did not disclose the transaction value of the deal. 

Similarly, APL Apollo Tubes gained over 6.50% from its previous close of 1,097.40 and hit an intraday high of 1,169.50. Broking firm Sharekhan said that it is bullish on APL Apollo Tubes and recommended buy rating on the stock with a target price of Rs 1275.

It said that the company will likely sustain a high earnings growth momentum (expect EBITDA/PAT CAGR of 31%/33% over FY22-25E) supported by robust double-digit volume growth and margin expansion. Hence, we maintain a Buy rating on stock with a revised Price Target of Rs 1,275, Sharekhan said in its research report.

The share of Welspun Corp Limited has jumped around 5% and was trading around 269.80 at 12:30 PM. Other top gainers in the metal sector are Vedanta Limited, Hindalco Industries Limited and National Aluminium Company Limited, gaining 2 to 6 per cent.