Indian metal company’s shares jumped substantially on July 5 after Reuters reported that China is proposing to launch a $75 billion infrastructure fund to help the country’s economy.

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On the National Stock Exchange, shares of Hindalco, Vedanta, National Aluminium Company, Tata Steel, Jindal Steel, Steel Authority of India, and JSW Steel climbed 1%-3.5%. The Nifty Metal index was up 2.04% at 4,744.85 points at 121:0 p.m. So far in 2022, the index has lost 14%.

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The Chinese economy was hammered in 2022 as a result of the breakout of the Omicron variant, which was compounded by the country’s contentious ‘zero COVID’ policy. Lockdowns in major industrial centres have damaged the Chinese economy, casting doubt on the country’s objective of 5.5% growth in 2022.

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The government has unveiled a raft of initiatives to boost economic activity, with a focus on the faltering property and infrastructure sectors.

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A prospective increase in infrastructure activity in the world’s second-biggest economy might serve as a trigger for a fresh rise in global commodity prices, which have been under pressure due to fears about a global economic downturn headed by the United States.

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Furthermore, domestic commodity producers have found themselves in the crosshairs of the government’s war against inflation as a result of the implementation of export taxes to combat runaway inflation in basic commodities.

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However, a jump in Chinese demand might be a boon for Indian firms, who have increased their exports to the Asian country in recent years as domestic producers in China have been shut down owing to environmental concerns.