As China announces a $75 billion infrastructure fund, the metal index up by 0.85%

Due to the Omicron variant's spread in China in 2022, the country's economy has suffered, Nifty Metal Index is up by 0.85%.

July 05, 2022 1:58 IST | India Infoline News Service
The Omicron variant epidemic in 2022 has severely harmed the Chinese economy, which has been made worse by the nation's divisive "zero COVID" policy. The Chinese economy is in shambles, and the nation's goal of 5.5% growth in 2022 is now in doubt due to the widespread lockdowns that have affected major industrial centres.

The administration recently unveiled a host of initiatives to support economic activity, with a focus on the economy's ailing real estate and infrastructure sectors.

A prospective uptick in infrastructure spending in the second-largest economy in the world could serve as a catalyst for a new rally in commodities prices, which have been under pressure due to worries about a slowdown in the world economy headed by the US.

Furthermore, domestic commodity producers have been targeted by the government's war on inflation as a result of the introduction of export taxes meant to rein in basic commodities' out-of-control inflation.

However, a rise in Chinese demand could be advantageous for Indian businesses, who have increased their shipments to China in recent years as a result of the closure of domestic producers there due to environmental concerns.

On the National Stock Exchange, shares of Hindalco, Vedanta, National Aluminium Company, Tata Steel, Jindal Steel, Steel Authority of India, and JSW Steel increased by 1%-3.5%.

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