Metal and mining stocks shine after China stimulus

Shares of nine metal and mining firms rose by 0.18% to 10.62% at 13:05 IST on BSE on stimulus measures from China.

Tata Steel (up 3.97%), Hindalco Industries (up 9.74%), Hindustan Copper (up 2.74%), Steel Authority of India (up 3.57%), NMDC (up 4.21%), JSW Steel (up 0.18%), National Aluminium Company (up 1.93%) and Jindal Steel & Power (up 5.26%) edged higher. Hindustan Zinc shed 0.66%.

Vedanta jumped 10.62%. With reference to media reports titled Vedanta eyes Solar Energy Biz, plans to create 500 MW capacity, Vedanta after market hours on Friday, 9 October 2015 clarified that the company has no firm plans to enter the solar generation industry and termed the media reports as speculation.

The S&P BSE Metal index was up 2.84% at 7,650.16 and was the top gainer among the sectoral indices on the BSE. The index outperformed the S&P BSE Sensex which was off 0.09% at 27,054.31.

The S&P BSE Metal index had underperformed the market over the past one month till 9 October 2015, rising 0.99% compared with 5.29% rise in the Sensex. The index also underperformed the market in past one quarter, falling 15.39% as against Sensex's 1.79% decline.

Meanwhile, High Grade Copper for December 2015 delivery was currently up 0.72% at $2.4315 per pound on the COMEX.

China's central bank announced over the weekend that it will expand a relending trial to nine more cities and provinces, including Shanghai and Beijing. The plan, currently in place in Shandong and Guangdong, allows banks to pledge certain assets to secure loans from the central bank. China is the world's largest consumer of steel, copper and aluminum.

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