Metal stocks rise as China reduces rates
By
Research Desk
about 10 years ago
The top gainers on the bourses today are mostly metal stocks, with Jindal Steel ruling higher by over 4% at Rs.149, SAIL also up around 4% at Rs.87 levels, Hindalco is up 3.5% at Rs.166 and Tata Steel is up 2.5% at Rs.474.
The metal stocks are up, reacting to China, on Friday, in a surprise move, reducing interest rates for the first time since 2012, to prop up the sagging economy. The rate for one-year lending was reduced by 0.4% to 5.6% and one-year deposit rate was reduced by 0.25% to 2.75%.
The expectation is that this will once again spur development, infra build, which in turn will increase demand for metals.