Metal and mining stocks in demand
Eight shares from metal and mining sector rose by 0.85% to 3.18% at 12:21 IST on hopes demand for metal would pick up after the World Bank raised its global growth forecasts.
Hindalco Industries (up 2.24%), Sesa Sterlite (up 2.05%), Hindustan Zinc (up 1.19%), Sail (up 1.2%), Tata Steel (up 0.85%), National Aluminium Company (up 2.33%), Jindal Steel & Power (up 0.99%), NMDC (up 3.18%) and Hindustan Copper (up 0.96%) edged higher.
The S&P BSE Metal index was up 1.38% at 9,551.71 and was the second biggest gainer among sectoral indices on BSE. It outperformed the S&P BSE Sensex, which was up 1.08% at 21,260.83.
The S&P BSE Metal had underperformed the market over the past one month till 14 January 2014, falling 2.08% compared with the Sensex's 1.53% rise. The index had, however, outperformed the market in past one quarter, rising 8.76% as against Sensex's 2.06% rise.
The World Bank on Tuesday, 14 January 2014 raised its global growth forecasts as the easing of austerity policies in advanced economies supports their recovery, boosting prospects for developing markets' exports. The Washington-based lender sees the world economy expanding 3.2% this year, compared with a June projection of 3% and up from 2.4% in 2013. The forecast for the richest nations was raised to 2.2% from 2%. Part of the increase reflects improvement in the 18-country euro area, with the US ahead of developed peers, growing twice as fast as Japan. The report by the institution that's trying to eradicate extreme poverty by 2030 indicates a near-doubling of the growth in world trade this year from 2012, as developed economies lift export-reliant emerging nations. At the same time, the withdrawal of monetary stimulus in the US may raise market interest rates, hurting poorer countries as investors return to assets such as Treasuries, according to the bank.
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