Shares of 9 metal miners and producers rose by 0.5% to 5.74% after China's manufacturing activity expanded in June.
The Nifty Metal index gained 1.87% to 2,026.65, outperforming other sectoral indices on the NSE. The metal index slumped 2.64% on Monday.SAIL (up 5.74%), Jindal Steel & Power (up 3.76%), Hindalco Industries (up 2.71%), NMDC (up 2.59%), Hindustan Zinc (up 2.27%), Hindustan Copper (up 1.72%), NALCO (up 0.94%) and JSW Steel (up 0.5%) advanced.
Tata Steel rose 2.71% to Rs 329.95. The steel major reported a consolidated net loss (from continuing operations) of Rs 1,236 crore in Q4 March 2020 as against net profit of Rs 2,353 crore in Q4 March 2019. Turnover declined 20.40% to Rs 33,770 crore in Q4 FY20 from Rs 42,424 crore in the same period last year. The result was announced after market hours yesterday, 29 June 2020.
The company reported an exceptional loss of Rs 3,406 crore in Q4 FY20 on the back of impairment of non-current assets and loss on preference share investments. Profit before exceptional items stood at Rs 1906.40 crore in Q4 FY20, declining 55% from Rs 4241.01 crore in Q4 FY19. Tata Steel received a tax rebate of Rs 263.28 crore in Q4 FY20 as against total tax expense of Rs 1,899.06 crore in Q4 FY19.
China's factory activity expanded at a faster pace in June as the economy continued to recover after the government lifted strict lockdowns and ramped up investment. The official manufacturing Purchasing Manager's Index (PMI) rose to a three-month high of 50.9 in June from 50.6 in May, above the 50-point mark that separates growth from contraction on a monthly basis.
China is the World's largest producer and consumer of industrial metals.
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