Metal stocks gain ground in otherwise weak market

Metal stocks today rose by up to 3 per cent after the government cleared a proposal to amend the Mines and Minerals Development and Regulation Act (MMDR) to allow transfer of captive mining leases not granted through auction.
Shares of Hindalco went up by 3.02 per cent, Jindal Steel & Power rose 1.23 per cent, Steel Authority of India Ltd (0.94 per cent) and Vedanta (0.40 per cent) on BSE.
The BSE metal index rose by 0.36 per cent to end at 7,532.07.
In the broader market, the BSE Sensex fell by 170.62 points to end at 24,623.34.
The move is aimed at allowing mergers and acquisitions of companies and facilitating banks and financial institutions to liquidate stressed assets where a company or its captive mining lease is mortgaged.

The amendment will allow transfer of captive mining leases not granted through auction.
"Transfer of captive mining leases, granted otherwise than through auction, would allow mergers and acquisitions of companies and facilitate ease of doing business for companies to improve profitability and decrease costs of the companies' dependent on supply of mineral ore from captive leases," an official statement said.