Shares of 11 metal and mining companies rose by 0.20% to 8.05% at 14:12 IST on BSE on bargain hunting after witnessing sell off in past few trading sessions.
Steel Authority of India (up 8.05%), Tata Steel (up 6.25%), JSW Steel (up 5.32%), Vedanta (up 3.95%), Hindalco Industries (up 2.65%), Jindal Steel & Power (up 2.17%), NMDC (up 1.85%), Bhushan Steel (up 1.74%), National Aluminium Company (up 1.34%), Hindustan Zinc (up 1.23%) and Hindustan Copper (up 0.20%), edged higher.
The S&P BSE Metal index was up 2.89% to 7,153.44. It outperformed the BSE Sensex, which was up 1.46% at 25,258.43.
The S&P BSE Metal index fell 6.63% in the preceding five trading sessions to 6,952.36 yesterday, 7 September 2015, from a recent high of 7,446.07 on 31 August 2015.
The S&P BSE Metal index had underperformed the market over the past one month till 7 September 2015, falling 19.84% compared with 11.84% fall in the Sensex. The index had also underperformed the market in past one quarter, falling 26.50% as against Sensex's 7% decline.
The recent fall in metal shares was triggered by slew of weak economic data in China, which is the world's largest consumer of steel, copper and aluminum.
China's National Bureau of Statistics on Monday, 7 September 2015, revised down 2014 gross domestic product (GDP) growth to 7.3% from a previously reported 7.4%. This growth revision came on the back of comments by China's Finance Minister Lou Jiwei over the weekend that GDP growth will remain around 7% in 2015, as predicted earlier in the year, and the new economic normal may last for four to five years. A lower GDP number for 2014 should also make year-on-year comparisons for economic growth in 2015 more favorable.
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