Nifty Metal jumps 1.5% as investors await key U.S. jobs data; Tata Steel, Hindustan Zinc gain

Nifty Metal rises 1.5% ahead of U.S. payrolls report

The Nifty Metal index climbed 1.5% on 4 September as investors positioned themselves ahead of the U.S. non-farm payrolls report, a closely watched indicator that could influence the Federal Reserve's interest-rate decision later this month.

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At around 2:35 pm, the index was trading at 13,375. APL Apollo Tubes, Tata Steel and Hindustan Zinc were among the top gainers, rising about 4%, 3% and 2%, respectively, according to Moneycontrol market data.

Focus shifts to Fed rate outlook

Market participants are looking to the U.S. jobs report for clues on whether the Federal Reserve will raise interest rates at its upcoming policy meeting. Traders are currently pricing in roughly a 50% chance of a rate hike later this month, according to the CME FedWatch Tool cited by Moneycontrol.

The August payrolls report is scheduled to be released at 6 pm IST.

Fed official signals cautious approach

Federal Reserve Governor Christopher Waller said recent economic data has shown signs of easing inflation and that he would support keeping interest rates unchanged if future data continues to point in that direction.

Waller also said he does not expect the payrolls data to differ significantly from the current trend of a stable labour market.

Payroll forecasts

Economists expect the U.S. economy to have added 56,000 jobs in August, according to forecasts cited by Moneycontrol. That would follow a decline of 23,000 jobs in the previous month.

The unemployment rate is expected to remain unchanged at 4.1%.

Why it matters for metal stocks

Interest-rate expectations in the U.S. often affect commodity prices, industrial demand forecasts and global investor sentiment. Metal companies and related stocks tend to react to changes in the outlook for economic growth and borrowing costs.

With the Fed's next move still uncertain, investors are watching the payrolls data for fresh signals on the direction of U.S. monetary policy.