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Shares of metal and real estate companies surged on September 2, supported by multiple positive triggers; Know key reasons behind the surge
Metal, real estate stocks rise: Know key reasons
Shares of metal and real estate companies surged on September 2, supported by multiple positive triggers. The rally pushed both sectoral indices into the green, leading the broader market higher.
By 12:10 pm, the Nifty Metal index was up 1.3% at 9,426, while the Nifty Realty index gained 1.33% to 891.50. Analysts pointed to five key factors driving the rally.
Fed Rate Cut Hopes
On August 22, Federal Reserve Chair Jerome Powell signaled that the weakening US job market could soon compel the Fed to cut interest rates. He noted that “downside risks to employment are rising” at the Jackson Hole Economic Policy Symposium.
Investors now widely expect a 25-basis-point cut in the upcoming Fed meeting scheduled for September 16–17. A US rate cut would lower borrowing costs for foreign investors, making India an attractive destination for higher growth. This directly supports real estate and metal counters. There is also an expectation that the RBI may follow suit, further boosting sentiment.
GST Reforms on the Horizon
The GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet in New Delhi on September 3–4 to discuss a simplified two-rate structure of 5% and 18%.
According to Pradeep Aggarwal, Chairman of Signature Global (India) Ltd, the move would ease compliance for real estate developers, rationalise input costs, improve cash flows, and eventually reduce home prices. Market experts believe this could provide a significant boost to the housing sector.
Strong Q1 GDP Numbers
India’s GDP grew 7.8% in Q1 FY26 (April–June), the fastest pace in five quarters. The reading surpassed the RBI’s 6.5% projection, as well as the 6.6% median estimate in a market poll.
This figure also bettered the 7.4% growth in Q4 FY25 and the 6.5% growth in Q1 FY25, signalling resilient economic momentum. The stronger-than-expected GDP print boosted investor confidence, particularly in cyclical sectors such as metals and real estate.
Weakening Dollar
The US dollar is hovering near multi-month lows, pressured by expectations of Fed rate cuts and a softening labour market. Analysts at DBS noted that Trump’s new Fed appointments could further weigh on the greenback.
A weaker dollar tends to boost demand for commodities like metals, improving export opportunities and pricing power for Indian companies in the sector.
China to Cut Steel Output
China plans to reduce steel production between 2025 and 2026, aiming to address overcapacity that has dragged global prices. The cut would reduce the supply of cheap metals flooding into India, benefitting domestic metal producers.
Stock-Specific Gains
Among metals, NALCO jumped nearly 5% to lead the index, followed by NMDC with a 4% rise. Other gainers included Hindustan Copper, SAIL, Tata Steel, APL Apollo Tubes, Hindustan Zinc, and JSW Steel, which climbed up to 3%.
In real estate, Phoenix Mills rose 3.5% to trade at ₹1,570, while Anant Raj and DLF gained up to 3%. Godrej Properties, Oberoi Realty, and Raymond advanced nearly 2% each.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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