Metal shares in demand on strong Chinese data

Ten metal shares rose by 0.52% to 2.55% at 9:51 IST on BSE as economic data in China showed growth in China's services sector hit a five-month high in August.

NMDC (up 2.55%), JSW Steel (up 2.38%), Hindustan Zinc (up 2.26%), Hindalco Industries (up 1.87%), Sail (up 1.74%), Jindal Steel & Power (up 1.71%), Tata Steel (up 1.69%), Sesa Goa (up 1.09%), Bhushan Steel (up 0.53%) and Coal India (up 0.52%), edged higher.

The S&P BSE Metal index was up 1.20% at 7,902.33. It outperformed the S&P BSE Sensex, which was up 0.80% at 18,379.69.

The S&P BSE Metal index had outperformed the market over the past one month till 3 September 2013, rising 19.96% compared with the Sensex's 4.85% decline. The index had, however, underperformed the market in past one quarter, sliding 8.51% as against Sensex's 7.02% fall.

Growth in China's services sector hit a five-month high in August underpinned by new orders and business optimism, a private survey showed on Wednesday, adding to views that the world's second-largest economy had avoided a sharp slowdown. The Markit/HSBC Services Purchasing Managers' Index (PMI) climbed to 52.8 in August after seasonal adjustments, up from July's 51.3 and the highest since March. The reading was well above the 50 level that demarcates an acceleration in activity from a slowdown, although a sub-index for employment shrank.

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

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