Metal shares in demand

Eight metal shares rose by 0.07% to 5.24% at 9:26 IST on BSE after a report showed that China's manufacturing unexpectedly expanded in August 2013.

Sesa Goa (up 5.24%), Sterlite Industries (India) (up 4.04%), Hindustan Zinc (up 3.02%), Hindalco Industries (up 1.93%), JSW Steel (up 1.91%), Tata Steel (up 1.75%), NMDC (up 0.46%) and Jindal Steel & Power (up 0.07%), edged higher.

The S&P BSE Metal index was up 2.48% at 7,328.49. It outperformed the S&P BSE Sensex, which was up 0.21% at 17,943.07.

The S&P BSE Metal index had outperformed the market over the past one month till 21 August 2013, falling 4.38% compared with the Sensex's 11.14% decline. The index had, however, underperformed the market in past one quarter, falling 18.13% as against Sensex's 10.97% fall.

The preliminary HSBC China Manufacturing Purchasing Managers Index, a gauge of nationwide manufacturing activity, rose to 50.1 in August 2013, compared with a final reading of 47.7 in July 2013. A reading above 50 indicates expansion from the previous month, while a reading below 50 indicates contraction. China is the world's largest consumer of copper and aluminum.

Meanwhile, Sesa Goa will replace Sterlite Industries in the 30-share benchmark S&P BSE Sensex from 27 August 2013. The move comes in the wake of the scheme of amalgamation between the two Vedanta group firms whereby Sterlite Industries has been merged with Sesa Goa.

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