Metal shares decline on weak China data

Shares of metal companies are trading lower up to 4% on weak Chinese economic data. China's factory output grew at the weakest pace in nearly six years in August raising fears the world's second-largest economy may be at risk of a sharp slowdown.

 

Tata Steel, Sesa Sterlite, Jindal Steel, Hindalco and Coal India are down 1-4% on the National Stock Exchange (NSE).

 

At 12.35 PM, CNX Metal index is down about 1.4% or 46 points at 3,113 compared to 0.7% or 60 points decline in benchmark CNX Nifty at 8,045 mark.

 

Industrial output rose 6.9% in August from a year earlier - the lowest since 2008 when the economy was buffeted by the global financial crisis - compared with expectations for 8.8% and slowing sharply from 9.0% in July.

 

A weaker-than-expected manufacturing data from China added to the concern that the world's largest consumer of steel, copper and aluminum will miss its economic growth target.