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Metal shares slip on weak Chinese data 21-Jun-2012

Bhushan Steel (down 0.89%), Jindal Steel & Power (down 0.88%), Hindustan Zinc (down 0.86%), JSW Steel (down 0.85%), Hindalco Industries (down 0.78%), Sterlite Industries (down 0.57%), NMDC (down 0.34%), Tata Steel (down 0.33%), Sesa Goa (down 0.16%) and Sail (down 0.05%), edged lower.

The BSE Metal index was down 0.36% at 10,399.50. It underperformed the Sensex, which was down 0.11% at 16,878.23.

The BSE Metal index had underperformed the market over the past one month until 20 June 2012, gaining 3.56% compared with the Sensex's 4.61% rise. The index had also underperformed the market in past one quarter, falling 8.97% as against 2.42% fall in the Sensex.

Chinese manufacturing activity weakened further in June compared to business conditions in the previous month as output and new export orders declined, according to the initial findings of a survey by HSBC.

The so-called flash Purchasing Managers' Index dropped to a seven-month low of 48.10 in June, compared with the final reading of 48.40 in May. A reading below 50 indicates a deterioration in business conditions at factories, while one above 50 shows an improvement. China is the world's largest consumer of copper and aluminum.

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