The Nifty Metal Index is the top sectoral gainer in a weak market in Friday’s trading session. 11 out of the 15 index constituents are currently trading with gains.

Stocks like NALCO and NMDC are the top gainers on the Metal index, trading with gains of 3% each. Other names like SAIL, JSPL and Hindalco too are trading with gains between 2% and 3%.

Metal stocks had declined in the earlier part of this week after the earlier stimulus measures announced by China to lift the economy fell short of expectations. However, news came in later that the Chinese Finance Minister will be holding a briefing on Saturday to announce further stimulus measures.

A report from Bloomberg indicates that investors and analysts are expecting China to deploy as much as 2 trillion yuan or $283 billion in fresh fiscal stimulus.
China has already cut interest rates and ramped up support for property and stock markets in a barrage of steps announced late September. But investors have clamored for fiscal interventions economists believe are crucial to lifting confidence.

Most of the respondents in a survey conducted by Bloomberg, including economists, strategists and fund managers, expect new fiscal stimulus in the next six months if Finance Minister Lan Fo’an doesn’t announce it Saturday.

A portion of the stimulus is expected to target consumption, which has been a weak spot in China’s post-pandemic recovery. Respondents said the measures may include:

• More subsidies for targeted groups, such as the elderly and the poor
• Consumption vouchers
• More support for families with children
• Greater social safety net
• More subsidies for buying consumer goods and cars

The Nifty Metal index is currently trading with gains of over 1% and is up for the third straight trading session.

(With Inputs From Agencies.)