Metal stocks edge lower after weak China data

Eleven metal shares fell by 0.31% to 3.28% at 12:03 IST on BSE after weak economic data in China.

Steel Authority of India (down 3.28%), Hindalco Industries (down 2.91%), Tata Steel (down 2.76%), NMDC (down 2.7%), National Aluminium Company (down 1.81%), Vedanta (down 1.7%), Hindustan Zinc (down 1.12%), Hindustan Copper (down 0.97%), Bhushan Steel (down 0.79%), JSW Steel (down 0.78%) and Jindal Steel & Power (down 0.31%), edged lower.

The S&P BSE Metal index was down 1.31% points at 7,211.89. It underperformed the S&P BSE Sensex, which was down 0.72% at 26,463.96.

A private gauge of China's manufacturing activity, the Caixin China manufacturing purchasing managers index, rose to 48.3 in October, marking the eighth-straight month of contraction. The reading, which tends to capture more private enterprises than the official reading, was at 47.2 in September. A reading above 50 indicates expansion in activity, while one below that level signals contraction.

Meanwhile a data on Sunday, 1 November 2015, showed China's official manufacturing purchasing managers index (PMI), the bellwether of large industrial firms, was unchanged at 49.8 in October. The indicator has remained below 50 for three straight months since August, reflecting sluggish economic activities.

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

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