Shares of metal companies are trading higher by up to 4% following the unexpected rate cut by China.
Hindalco, Jindal Steel and Power (JSPL), Sesa Sterlite, Tata Steel, Steel Authority of India and JSW Steel are trading higher between 2-4% on the National Stock Exchange (NSE).
The NSE CNX Metal index, the largest gainer among sectoral indices, up 2.4% compared to 0.47% rise in the benchmark CNX Nifty at 0939 hours.
The China has cut benchmark interest rates for the first time since July 2012 as leaders step up support for the world’s second-largest economy.
Among the individual stocks Hindalco and JSPL have rallied 4% each at Rs 167 and Rs 149 respectively. SAIL up 3.5% at Rs 87, followed by Tata Steel and Sesa Sterlite up 3% each at Rs 478 and Rs 244 respectively.