Metal shares fall on weak Chinese data

Shares of eight metal and mining companies fell by 0.13% to 4.96% at 10:45 IST on BSE after negative economic data in China.

Bhushan Steel (down 4.96%), Hindalco Industries (down 2.79%), Jindal Steel & Power (down 2.48%), Tata Steel (down 1.75%), Sesa Sterlite (down 1.20%), JSW Steel (down 0.90%), Hindustan Zinc (down 0.21%) and Steel Authority of India (Sail) (down 0.13%), edged lower.

The S&P BSE Metal index was down 1.30% at 12,361.47. It underperformed the Sensex, which was down 0.80% at 26,843.43.

The S&P BSE Metal index had underperformed the market over the past one month till 12 September 2014, falling 1.34% compared with 4.56% rise in the Sensex. The index had also underperformed the market in past one quarter, falling 7.10% as against Sensex's 5.81% rise.

Chinese factory and retail data added to evidence a slowdown is deepening in China. Factory production in China rose 6.9% in August from a year earlier, the statistics office reported on 13 September 2014, down from 9% in July. It was the slowest pace outside the Lunar New Year holiday period of January and February since December 2008. Growth in fixed-asset investment slowed to 16.5% in August, while retail sales expanded 11.9% in August, easing from 12.2% in July.

China is the world's largest consumer of steel, copper and aluminum.

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