Metal stocks surprisingly rallied in trade today with Tata Steel leading gainers from the pack. The metal stock gained 4 per cent, while Sterlite Industries also rallied 4 per cent in trade, while Jindal Steel and Hindalco industries were up 3 per cent in trade.
Dealers say that value buying has emerged in the beaten down metal stocks with shares like Tata Steel trading at price to earnings multiples of just 5-6 times.
Most of these stocks are trading way below their book values and their p/e multiples are even lower then the 2008 crisis.
Most of the blue chip names from the sector had only recently touched their 52-week lows on sustained selling pressure.