Business

Metal shares trip as China cuts growth target

Shares of metal companies were trading lower after China, the world’s largest consumer of metals, lowered its economic growth forecast for the current year.

On Thursday, China announced a lower economic growth forecast of around 7%. The world’s second largest economy had registered a growth rate of 7.4%.

Meanwhile, with a view to boost the sluggish economy China plans to raise government spending.

Grappling to sustain an economy weighed down by a cooling property market, high debt levels and excess factory capacity, Beijing plans to lift government spending to 17.15 trillion yuan ($ 2.74 trillion) in 2015, an increase of 10.6% on 2014, Reuters said in a note.

Hindalco was the top Sensex loser down 2% while Tata Steel eased 1.3%, SAIL dipped 1.1% and Jindal Steel and Power was trading 0.6% lower.