Sterlite Industries (STLT:US) and Hindalco Industries Ltd. (HNDL) fell in Mumbai on concern demand and prices of aluminum and copper may decline as China, the world’s biggest base-metals buyer, reins in stimulus measures.
Sterlite, the nation’s largest copper producer, declined as much as 3.4 percent, the most since March 26, to 106.85 rupees and traded at 107.30 rupees as of 11:19 a.m. in Mumbai. Hindalco, India’s second-largest aluminum maker, fell as much as 4.3 percent, the most since March 6, to 127.40 rupees and traded at 128.1 rupees.
China’s inflation accelerated more than forecast in March on a pickup in food prices, signaling that policy makers may exercise caution in adding stimulus to boost growth. Consumer prices rose 3.6 percent from a year earlier, the National Bureau of Statistics said today, more than the median 3.4 percent estimate in a Bloomberg News survey of 33 economists. Food- related costs gained 7.5 percent.
“Inflation is again sticking out its neck and that’s not good news for emerging markets like China and India, which follow similar trends,” said Ameya Hardas, research head at Shah Investor’s Home Ltd. in Mumbai. “Later this week China is also likely to report a slower growth, which is severely impacting investor sentiment.”
China’s economy probably grew 8.4 percent in the first quarter, according to the median estimate of 38 economists surveyed by Bloomberg. That compares with 8.9 percent in the fourth quarter, which was the slowest in 10 quarters. The customs department is set to issue provisional trade data for commodities tomorrow.
India’s Supreme Court will today hear a Sterlite petition challenging the government’s Aug. 24, 2010 decision to halt bauxite mining in the eastern state of Odisha.
To contact the reporter on this story: Abhishek Shanker in Mumbai at firstname.lastname@example.org
To contact the editor responsible for this story: Rebecca Keenan at email@example.com