Eight metal and mining stocks declined by 0.43% to 1.73% at 11:05 IST on BSE after a private survey showed China's factory growth stalled and was at six-month low in November 2014.
Meanwhile, the S&P BSE Sensex was up 30.61 points or 0.11% at 28,062.93.
Among metal and mining stocks, Bhushan Steel (down 0.43%), Hindustan Copper (down 0.44%), Sesa Sterlite (down 0.58%), Jindal Steel & Power (down 0.86%), Tata Steel (down 0.52%), Steel Authority of India (Sail) (down 0.76%), National Aluminum Company (down 1.73%) and NMDC (down 0.9%) declined. Hindalco Industries (up 1.03%), JSW Steel (up 0.44%), and Hindustan Zinc (up 0.86%), gained.
The S&P BSE Metal index had underperformed the market over the past one month till 19 November 2014, rising 3.26% compared with the Sensex's 7.37% rise. The scrip had also underperformed the market in past one quarter, declining 14.07% as against Sensex's 6.1% rise.
Growth in China's vast factory sector stalled in November, with output contracting for the first time in six months, a private survey showed today, 20 November 2014, adding to signs that the economy may still be losing traction. The reading is the latest in a string of weak figures in recent weeks, strengthening the case for more stimulus to avert a sharper slowdown in the world's second-largest economy.
The flash HSBC/Markit manufacturing purchasing managers' index (PMI) fell to a six-month low of 50.0 from a final reading of 50.4 in October and well below the 50.3 forecast by analysts. A reading above 50 indicates expansion, while one below 50 points to contraction on a monthly basis.
China is the world's largest consumer of copper, steel and aluminum.
Meanwhile, the Ministry of Coal yesterday, 19 November 2014, placed in public domain the draft rules for auction/allocation of 204 coal blocks cancelled by the Supreme Court in September this year. The draft rules provide the process of allocation through auction and allotment. The central government will issue an order to the Nominated Authority specifying which coal mines are to be auctioned and which are to be allotted to the government companies. The Nominated Authority will prepare a 'Mine Dossier' for each mine containing the particulars of geographical area, coal reserves, mine infrastructure, approvals, permits, etc. in relation to such mine.
Eligibility to bid for Schedule II & III coal mines shall be dependent on the status of preparedness of their end use plant viz. 80% of investment made in the EUP for Schedule II mines and 60% of investment made in the EUP for Schedule III mines. In case of allotment to government companies, the progress of development of coal blocks by the applicant in the past, financial and technical capabilities of the applicant, status of preparedness of end use plant, per-capita power availability in the state of the applicant, its current and future requirements etc. will be the factors for selecting the allottee. The Nominated Authority may also specify the maximum number of mines and/or coal reserves that may be allocated to one or more persons.
The draft rules for auction/allocation of coal blocks also provide the manner of determination of compensation, priority of disbursal of proceeds arising out of land and mine infrastructure, determination of claims and manner of disbursement.
A successful bidder or allottee may utilize coal mined from a particular coal mine in any of its other similar end use plants by giving a prior intimation to the Central Government in writing and the Central Government may impose such terms and conditions as may be found necessary.
The coal ministry has invited comments on the draft rules for auction/allocation of coal blocks from the public and stakeholders. The comments and suggestions can be sent by 9:00 IST on Monday 24 November 2014, the coal ministry said.
Coal is used in the production of steel.
Powered by Capital Market - Live News
