Twelve metal and mining shares rose by 0.29% to 3.42% at 9:25 IST on BSE after copper prices in the international market climbed more than 2% on November 28th 2011 regaining ground after 4 weeks of losses.

NMDC (up 3.42%), Hindustan Zinc (up 2.71%), Sterlite Industries (up 2.70%), Hindalco Industries (up 2.46%), Nalco (up 2.42%), Jindal Steel & Power (up 2.10%), JSW Steel (up 2%), Sesa Goa (up 1.84%), Sail (up 1.82%), Coal India (up 1.30%), Tata Steel (up 1.23%) and Bhushan Steel (up 0.29%), edged higher.

The BSE Metal index was up 2.41% at 10,112.70. It outperformed the Sensex which was up 1.62% at 15,949.44. The BSE Metal index had underperformed the market over the past one month until November 15th 2011 sliding 13.06% compared with the Sensex's 9.04% decline. The BSE Metal index had also underperformed the market in past one quarter, falling 14.66% as against 2.79% slide in the Sensex.

Gains in copper prices were backed by a softer dollar and hopes that Italy may secure financial aid as Europe takes steps this week to ease funding strains on the euro zone's troubled economies. A softer dollar against a basket of currencies makes dollar-priced commodities cheaper.

Three month copper on the London Metal Exchange rose USD 156 per tonne to USD 7,386 per tonne. Copper lost around 12% in the past four weeks. Copper, used largely in power and construction, is considered a gauge of economic activity.

(Sourced from www.indiainfoline.com)