Shares of metal companies are trading higher by up to 3%, extending their past two days gain after a preliminary version of HSBC's China manufacturing purchasing managers' index (PMI) hit a 14-month high in December 2012.
Tata Steel, Hindalco Industries, Sterlite Industries, Sesa Goa, JSW Steel and Jindal Steel and Power are trading higher by 2-3% on the Bombay Stock Exchange (BSE).
The BSE metal index, the largest gainer among sectoral indices, has surged almost 2% against less than 1% rise in benchmark Sensex at 1230 hours. The index has rallied 6% in past three trading sessions.
The HSBC flash PMI for December rose to 50.9, a 14-month high and the fifth straight monthly gain. A figure above 50 indicates that growth is accelerating, while one below 50 shows slowing growth.
This is good news as China is one of the biggest consumers of metals, according to analyst.
