Shares of metals companies are trading higher on the bourses in morning trades after LMEX, a gauge of six metals traded on the London Metal Exchange (LME), rose almost 3% on Monday, after China, the world's second-largest economy, has reported rise in its Purchasing Managers' Index (PMI) and hopes of further monetary easing by major central banks.
National Aluminum, Sesa Goa, Hindustan Zinc, Sterlite Industries, Jindal Steel and Power, JSW Steel, Tata Steel and Hindalco Industries are trading higher by 1-4% each on the Bombay Stock Exchange.
The Bombay Stock Exchange (BSE) metal index, the largest gainer among sectoral indices is trading higher by 1.4% or 147 points compared to 0.21% rise in the benchmark Sensex at 0950 hours.
LMEX had rallied 2.8% at 3,328 on July 3, 2012 on the London Metal Exchange.
“A surprise rise in China's services sector Purchasing Managers' Index (PMI), which expanded at its fastest pace in three months in June, also buoyed market sentiment and boosted prices,” the Reuters report suggests. China is the world's largest consumer of copper and aluminum.