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.