Metal Stocks Surge on Hopes of Economic Revival in China After Rate Cut

Metal stocks surged on Monday on hope of a turnaround in the Chinese economy as the central bank of China cut its benchmark interest rates by 25 basis points effective today.
 

This is the third rate cut by the Chinese central bank in last six months.
 

BSE Metal index, Bombay Stock Exchange's sub-index for metal stocks surged over three per cent to an intraday high of 10,286.05. Hindalco was the top gainer from the metal pack rising over 4 per cent to Rs 114.50. Vedanta Ltd, SAIL and Tata Steel also advanced over 3.5 per cent each.
 

Other metal stocks like JSPL, Hindustan Zinc, Nalco also gained between 1-3.5 per cent each.
 

China is a major consumer of metals in the world. Analysts say economic revival in China may lead to higher consumption of metals and will boost revenues of the Indian metal companies as they export metals to China.
 

Meanwhile, international metal prices are in a recovery trend which is also boosting sentiments for the metal stocks, analysts say.
 

The BSE Metal index ended 2.52 per cent higher at 10,202.97 compared to 1.63 per cent gain in the broader Nifty.