Metal stocks surge 2.3%; Tata Steel up 3.65%

Led by Tata Steel, metal stocks soared 2.3 per cent on the Bombay Stock Exchange back by reports of global miner Rio Tinto making a USD 3.5 billion bid approach for Africa-focused Reversdale Mining, in which the company holds a stake.

Besides, a firm trend in the entire base metals pack at the London Metal Exchange, also supported the upside in metal stocks.

The surge led to the 13-share BSE metal index, which gained 371.92 points, or 2.30 per cent to settle the day at 16,562.35, outperform other sectoral indices. 10 out of the 13 listed companies on Metal index, ended in positive zone.

The BSE benchmark Sensex, too, ended 14.38 points up at 19,981.31 after touching an intra-session high of 20,217.86.

Market analysts said that trading sentiment turned bullish after global miner Rio Tinto made a USD 3.5 billion bid approach for Africa-focused Riversdale Mining, in which the Tata Steel holds a 24.16 per cent stake.

Besides, RBS Equities, which has a buy rating on Tata Steel, said the event was a positive development for the steelmaker, which also triggered the buying activity, they said.

Stocks of the country's largest alloy maker Tata Steel ended 3.65 per cent higher at Rs 634.95 after rising to Rs 639.40, best level in almost four weeks.

Copper producer Sterlite Industries gained 3.65 per cent to Rs 171.70 per kg, while Jindal Steel and Power was up by 2.85 per cent to Rs 699.05 on the back of the reports that the company has got approval to expand a power plant.

Other gainers in the segment were SAIL, which was up by 1.37 per cent to Rs 184.50, Hindalco by 2.69 per cent to Rs 221.30, Nalco by 0.35 per cent to Rs 374.35, JSW Steel by 4.37 per cent to Rs 1,168.50 and Welspun Corp by 6.33 percent。