The move, as announced by China's central bank governor Pan Gongsheng on January 24, 2024, would lead to the government freeing up a sum of 1 trillion Yuan or $139.45 billion to the country’s stock markets.

Metal stocks gained up to 6% in Wednesday’s trade after China’s central bank announced that it will cut the reserve requirement ratio (RRR) for all banks by 50 basis points early next month.

Indian metal stocks, including Tata Steel, JSW Steel, Hindustan Copper, Steel Authority of India Ltd (SAIL), and Hindalco, were seen trading 3% to 6% higher in the closing session on Wednesday.

A positive sentiment around metal stocks prevailed in India, as China is the biggest consumer of metals in the world, and the central bank’s move would support its stock markets.

Tata Steel’s shares settled 3.69% higher at ₹ 134.90 per piece on NSE, while JSW Steel’s stock was up 2.37% at ₹809.10 apiece.

Hindustan Copper shares traded 5.47% higher at ₹272.85 per piece, SAIL was up 5.61% at ₹114.9 apiece, and Hindalco’s shares traded 4.68% higher at ₹566.75 apiece on NSE at closing.

People's Bank of China (PBOC) Governor Pan Gongsheng said on Wednesday at a press conference in Beijing that the bank would cut the reserve requirement ratio (RRR) for all banks by 50 basis points (bps), according to a Reuters report.

It is the biggest such cut since December 2021, the report added.

The move, as announced by China's central bank governor, Pan Gongsheng, on January 24, 2024, would lead to the government freeing up a sum of 1 trillion Yuan or $139.45 billion, to the country’s stock markets. This would provide the country a cushion given the multiple turmoils faced by China’s economy.

(Edited by : Ajay Vaishnav)

First Published: Jan 24, 2024 4:24 PM IST

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Metal stocks gain up to 6% as China announces to cut bank reserve ratio from February