Metal and mining shares in demand

Fifteen stocks from metal and mining sector rose by 0.23% to 4.3% at 13:45 IST on BSE after the latest data showed China's GDP grew a tad higher than market expectations in Q4 December 2014.

The S&P BSE Metal index was up 2.62% at 10,367.69 and was the top gainer among the sectoral indices on BSE. It outperformed the Sensex, which was up 0.99% at 28,540.48.

Among mining stocks, Hindustan Copper (up 1.19%), Neyveli Lignite Corporation (up 0.65%), Sesa Sterlite (up 4.3%), Ashapura Minechem (up 1.84%), MOIL (up 0.75%), NMDC (up 2.04%), GMDC (up 0.04%) and Coal India (up 0.45%) edged higher.

Among metal stocks, Hindustan Zinc (up 0.87%), Jindal Steel & Power (up 2.28%), JSW Steel (up 2.72%), Tata Steel (up 3.65%), Hindalco Industries (up 2.78%), Steel Authority of India (up 1.3%) and Bhushan Steel (up 0.23%) edged higher.

The BSE Metal index had underperformed the market over the past one month till 19 January 2015, falling 4.84% compared with 3.25% rise in the Sensex. The index also underperformed the market in past one quarter, sliding 6.9% as against Sensex's 8.25% rise.

Metal and mining shares rose today, 20 January 2015 after the latest data showed China's GDP grew 7.3% in Q4 December 2014, a tad higher than market expectations. China is the world's largest consumer of copper, steel, and aluminium.

Meanwhile, India's Minister of Steel and Mines Narendra Singh Tomar yesterday, 19 January 2015, said that simplification and transferability brought in the MMDR Act, 1957 through the Mines and Minerals (Development and Regulation) (Amendment) Ordinance, 2015 will attract private investment in the mining sector. Addressing a meeting of mines ministers and secretaries from across the country, Tomar said that the ordinance is a revolutionary step in revival of mining sector in the country, hitherto stagnated due to various reasons. He added that the classification of minerals will lead to their better scientific exploration and with more power to the states mining process will be expedite. Citing the example of falling levels of iron ore production in the country, Tomar urged state governments to revive mining in all earnestness. Mining ministers and secretaries from different states expressed optimism over the amendments, and offered constructive suggestions for its implementation on the ground level, the Ministry of Mines said in a statement. It was agreed that delays in environment and forest clearances had to be resolved by Ministry of Environment & Forests (MoEF) for providing unhindered support in growth of mining.

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