Shares of ten metal companies rose 2.28% to 7.74% after China's manufacturing activity displayed some expansion in April 2020.
Hindalco Industries (up 7.74%), Vedanta (up 7.71%), Tata Steel (up 5.42%), JSW Steel (up 4.42%), Steel Authority of India (up 4.3%), Jindal Steel & Power (up 4.23%), NMDC (up 3.31%), National Aluminium Company (up 2.59%), Hindustan Copper (up 2.54%) and Hindustan Zinc (up 2.28%) advanced.
China's National Bureau of Statistics said manufacturing activity in the country expanded slightly, reporting official manufacturing PMI of 50.8 for the month of April, as compared to 52.0 in March. PMI readings above 50 indicate expansion, while those below that level signal contraction.
The official PMI survey typically polls a large proportion of big businesses and state-owned companies.
China's manufacturing sector has been significantly impacted by the slowing export demand due to the economic impact emerging from the global coronavirus pandemic even as Chinese factories resumed production.
China is the world's largest producer and consumer of industrial metals. A recovery in the Chinese demand and production remains the key factor as far as metal stocks are concerned.
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