Mumbai: Shares of metal companies on Tuesday gained after new agency IANS reported that the government may allow integrated steel manufacturers to divert portion of iron ore from captive mines for use by their joint venture entities.
Optimism over the US-China trade deal and the European Union extending Brexit deadline to 31 January, 2020, also boosted sentiment.
"As per the new reform initiative proposed for mining, the Centre would permit steel producers to use an identified portion of iron ore from their captive mines allotted prior to the auction regime for use by any other of their entities or joint venture operations," the IANS report added.
Following the news, Tata Steel Ltd rose 6.7%, Jindal Steel & Power Ltd climbed 6.1%, Steel Authority of India Ltd advanced 6%, JSW Steel gained 5.3%, Vedanta Ltd 5.1%, NMDC 3.6%, Hindalco Industries Ltd 2.2%. The BSE Metal index jumped 4% to 9,357.60 points.
Recently, the government had allowed SAIL to sell a portion of iron ore from its captive mines in the open market to boost its revenue.