Metal shares extend Tuesday's upmove

Eight metal shares rose by 0.22% to 1.43% at 11:49 IST on BSE, extending Tuesday's gains triggered by China's central bank providing emergency funding support for commercial banks.

Tata Steel (up 1.43%), Hindalco Industries (up 1.37%), Sesa Sterlite (up 0.91%), Hindustan Zinc (up 1.06%), Sail (up 0.58%), JSW Steel (up 0.22%), Jindal Steel & Power (up 0.61%) and Hindustan Copper (up 0.78%), edged higher. NMDC shed 0.45%.

The S&P BSE Metal index was up 0.77% at 9,807.21 and was the second biggest gainer among the sectoral indices on BSE. It outperformed the S&P BSE Sensex, which was up 0.18% at 21,288.63.

Hindustan Zinc rose 1.06%, with the stock extending Tuesday's 2% gain. Trade minister Anand Sharma on Monday, 20 January 2014, said that Union Cabinet has approved divestment of government's residual stake in Hindustan Zinc. He said the method and timing of the stake sale would be decided later. The government sold its control in Hindustan Zinc to India-born billionaire Anil Agarwal's Vedanta Resources PLC almost a decade ago. The government now still has a 29.54% stake in Hindustan Zinc. Vedanta holds 64.92% stake in Hindustan Zinc through its Indian arm Sesa Sterlite -- erstwhile Sterlite Industries. Vedanta has been seeking a larger control of the company to fast-track decision-making.

Sesa Sterlite rose 0.91%, with the stock extending Tuesday's 1.56% rise.

The S&P BSE Metal index underperformed the market over the past one month till 21 January 2014, falling 0.48% compared with the Sensex's 0.81% rise. The index, however, outperformed the market in past one quarter, rising 6.08% as against Sensex's 1.71% rise.

Metal stocks edged higher for the second day in a row after China's central bank on Tuesday, 21 January 2014, said it provided emergency funding support for commercial banks as they gear up to meet demands for cash ahead of the Lunar New Year. China is the world's largest consumer of copper and aluminum.

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