Metal stocks perk up after China rate cut

Metal stocks were in demand today, surging up to 4 per cent, as unexpected interest-rate cuts from China, one of the biggest consumer of commodities, stoked optimism in the global economy.
Shares of Jindal Steel & Power Ltd surged 4.30 per cent, Sail gained 3.93 per cent and Hindalco Industries rose 3.37 per cent on the BSE.
Among others, Tata Steel was up 3 per cent, Hindustan Zinc jumped 2.99 per cent and JSW Steel surged 2.74 per cent.
Led by the gains in these stocks, the BSE Metal index rose by 1.64 per cent to settle at 11,309.91.
Analysts said that metal stocks gained on hopes an unexpected rate cut by China will boost demand in the sector.

People's Bank of China had lowered its benchmark deposit and lending rates by 0.25 and 0.40 percentage points respectively, said reports.
Meanwhile, in the broader market the BSE benchmark index Sensex ended the day with a gain of 164.91 points at new closing high of 28,499.54.