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Shares of metal companies are trading lower up to 2% in otherwise firm market after the Union Cabinet on Wednesday decided to raise the mining royalty rates. This should lead to an increase in input prices for all mineral-based industry.
Tata Steel, Sesa Sterlite, JSW Steel, Steel Authority of India (SAIL) and NMDC are down 1-2% on the National Stock Exchange (NSE).
At 1150 hours, CNX Metal index was down about 1% or 30 points at 3,246 compared to 0.13% or 10 points rise in benchmark CNX Nifty at 7,885.
“Iron ore and bauxite would now see a rate rise to 15% against the earlier 10%. Manganese ore would attract a royalty equivalent to 5% from 4.2% of the notified sales price”, the Business Standard report suggests.
Meanwhile, a weaker-than-expected manufacturing data from China also added to concern that the world's largest consumer of steel, copper and aluminum will miss its economic growth target.
A report from HSBC Holdings Plc and Markit Economics today showed preliminary China factory activity in August slid to a three-month low of 50.3 from 51.7 in July, missing estimates for a reading of 51.5 in a Bloomberg survey of economists, the Bloomberg report suggests.
At 1150 hours, CNX Metal index was down about 1% or 30 points at 3,246 compared to 0.13% or 10 points rise in benchmark CNX Nifty at 7,885.
“Iron ore and bauxite would now see a rate rise to 15% against the earlier 10%. Manganese ore would attract a royalty equivalent to 5% from 4.2% of the notified sales price”, the Business Standard report suggests.
Meanwhile, a weaker-than-expected manufacturing data from China also added to concern that the world's largest consumer of steel, copper and aluminum will miss its economic growth target.
A report from HSBC Holdings Plc and Markit Economics today showed preliminary China factory activity in August slid to a three-month low of 50.3 from 51.7 in July, missing estimates for a reading of 51.5 in a Bloomberg survey of economists, the Bloomberg report suggests.
