Metal stocks gain on hopes of ordinance route for mines sector reforms

Metal shares firmed up on hopes that the government may take the ordinance route to pave the way for auction of iron ore and other minerals.

Following the ordinances to implement coal and insurance reforms, the Ministry of Mines is hoping that the government would adopt the same for the mines sector which could offer a much wider decentralisation of power to states for allocation of resources.

Meanwhile, the Ministry of Mines has made some changes to the draft amendent Bill which seeks to implement competitive bidding through the auction route for iron ore and other minerals.

Sesa Sterlite was the top Sensex gainer up 4% after Kotak Securities upgraded the stock to 'buy' from 'reduce'earlier with a target price of Rs 250.

Among other metal majors, Jindal Steel and Power, Hindalco, Hindustan Zinc, JSW Steel, Hindalco, Tata Steel and Coal India were up 2.4-3.7% each.