4 Top Metal Stocks To Buy As Suggested By Motilal Oswal

While its fourth consecutive week of loss for the headline indices, Nifty metals during the week ended March 4, 2022 logged gains of 12% during the last 5 trading session in comparison to a loss on the Nifty index of 2%. With the Ukraine-Russia crisis, there looms supply disruption concerns and amid sanctions imposed on Russia, brokerage firm Motilal Oswal is of the view that commodities prices from nickel, aluminimum to PCI coal will be impacted positively.

4 Top Metal Stocks To Buy As Suggested By Motilal Oswal

The record price of Aluminium will benefit companies such as NALCO, Hindalco as well as Vedanta as the country is the net exporter of aluminium. Also, Coal India will benefit from the revival in coal demand, while Tata Steel will benefit from rising steel price in the European Union.

Top metal picks by Motilal Oswal

Motilal Oswal is bullish on stocks like Hindalco, Nalco and Coal India given the increasing commodity prices. Also, the brokerage house is bullish on the counter of Tata Steel as the steel price shall remain on the higher side in Europe. Nevertheless, the risk cited by the brokerage is consumption decline at high prices which can lead to sharp correction in commodity prices.
"Hindalco will benefit substantially from the sanctions on Russian aluminum due to its strong exposure in both upstream as well as downstream segments. Nalco is a direct beneficiary of the rise in aluminum and alumina prices due to sanctioning of Russia," the brokerage note added.

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