Shares of seven metal and mining companies rose by 0.05% to 3.24% at 14:18 IST on BSE on speculation China's central bank will ease monetary policy.
Jindal Steel & Power (up 3.24%), NMDC (up 2.46%), Sesa Sterlite (up 1.79%), Hindalco Industries (up 1.61%), Tata Steel (up 0.71%), JSW Steel (up 0.55%) and Bhushan Steel (up 0.05%), edged higher. Hindustan Zinc (down 0.25%) and Steel Authority of India (Sail) (down 0.34%), edged lower.
The S&P BSE Metal index was up 1.30% at 11,208.50. It outperformed the Sensex, which was down 0.26% at 28,486.46.
The S&P BSE Metal index had underperformed the market over the past one month till 1 December 2014, falling 6.63% compared with 2.49% rise in the Sensex. The index had also underperformed the market in past one quarter, sliding 12.15% as against Sensex's 6.30% rise.
Data yesterday, 1 December 2014, showing slower-than-forecast growth in China's manufacturing sector last month increased speculation the Chinese central bank will follow up on last month's cut in interest rates with a reduction in lenders' reserve-requirement ratios. Reserve ratios have remained unchanged at 20% for major banks and 18% for smaller banks since May 2012.
China is the world's largest consumer of steel, copper and aluminum.
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