Seven metal shares rose by 0.42% to 3.78% at 10:20 IST on BSE, extending Monday's firmness triggered by signs of ambitious economic reform in China.
Hindalco Industries (up 3.78%), Jindal Steel & Power (up 3.02%), JSW Steel (up 2.51%), Tata Steel (up 0.89%), Steel Authority of India (Sail) (up 0.53%), Sesa Sterlite (up 0.45%) and NMDC (up 0.42%), edged lower.
The S&P BSE Metal index was up 1.05% at 9,360.83. It outperformed the S&P BSE Sensex, which was up 0.23% at 20,898.81.
The S&P BSE Metal index rose 0.89% to 9,263.82 on Monday, 18 November 2013. The index has risen 1.95% in two sessions from 9182.17 on Thursday, 14 November 2013.
The S&P BSE Metal index had outperformed the market over the past one month till 18 November 2013, rising 2.73% compared with the Sensex's 0.15% fall. The index had also outperformed the market in past one quarter, rising 33.22% as against Sensex's 12.11% rise.
The Communist Party in Beijing on Friday, 15 November 2013, unveiled surprisingly bold economic reforms in which it said the market would play a decisive role.
Chinese leaders pledged to allow more private investment in state-controlled industries and expand farmers' land rights post the Communist Party plenum meeting.
Pledges listed in a 60-point document published three days after the meeting, known as the third plenum, also included establishing market-determined prices for resources.
Shares of domestic metal companies are seen as direct beneficiaries of the Chinese reforms as China is the world's largest consumer of copper and aluminum.
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