Shares of nine metal and mining companies rose by 0.90% to 6.79% at 11:33 IST on BSE after the release of encouraging purchasing managers index data from China, the world's largest consumer of steel, copper and aluminum.
Hindustan Zinc (up 6.79%), Vedanta (up 6.15%), Hindalco Industries (up 4.51%), Hindustan Copper (up 3.17%), NMDC (up 3.04%), Steel Authority of India (up 1.16%), Jindal Steel & Power (up 1.06%) and National Aluminium Company (up 0.92%), edged higher. Bhushan Steel (down 0.22%) and JSW Steel (down 0.45%), edged lower.
Tata Steel rose was up 0.90%. The company announced yesterday, 31 October 2016 that ratings agency Brickwork Ratings downgraded the company's credit rating to BWR AA from BWR AA+, with negative outlook for the unsecured non-convertible debenture (NCD) issues of Rs 4000 crore. The ratings agency also downgraded ratings to BWR AA- from BWR AA for the company's unsecured subordinated perpetual debt issues of Rs 2500 crore, with negative outlook. The sudden change of guard at the holding company/group level has not only heightened the management risk for Tata Steel, but also has exposed it to uncertainty over continuity of critical decisions on cost cutting and deleveraging the balance sheet concerning the unprofitable UK operations and restructuring its European business, the ratings agency said. Unless the company takes appropriate measures in this regard, it may lead to a further deterioration in financial profile of the company, as also a rating action, the agency added.
Meanwhile, the S&P BSE Sensex was up 4.23 points, or 0.02% at 27,934.44.
Copper edged lower in the global commodities market. High Grade Copper for December 2016 delivery was currently up 0.29% at $2.2115 per pound on the COMEX.
In economic data, China's official manufacturing PMI rose to 51.2 in October from 50.4 in September, adding to signs that the world's second-largest economy is stabilizing. China's official non-manufacturing purchasing managers index, a measure of activity outside factory gates, edged up to 54 in October from 53.7 in September. The Caixin manufacturing PMI for China was 51.2 in October, up from 50.1 in September.
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