Tata Steel, Vedanta, Jindal Steel, Jindal Stainless, NMDC shares rise up to 6% today, here's why 

Metal stocks such as Tata Steel Ltd, JSW Steel Ltd , Jindal Steel and Power, Vedanta, Jindal Stainless, NMDC and SAIL rose for the second session on Thursday after China announced that it would restructure its steel industry to reduce its total steel production. With reduced steel output from China, there will be less cheap Chinese steel entering the Indian market. This augurs well for Indian steel companies as it will enable them to sell steel at better prices, without much competition from cheap imports.

The steel stocks rose up to 6% in early deals in the current trading session. Tata Steel shares gained 2.33% to Rs 149.85 against the previous close of Rs 146.15. Market cap of the firm rose to Rs 1.86 lakh crore.

Jindal Steel and Power stock climbed 2% to Rs 905.50 against the previous close of Rs 892.45. Market cap of the firm stood at Rs 92,368 crore. Shares of JSW Steel rose 1.71% to Rs 1019.95 against the previous close of Rs 1002.80 on BSE.

Steel Authority of India stock gained 2.13% to Rs 114.90. Shares of Vedanta climbed 2% to Rs 439.05 against the previous close of Rs 429.15. Market cap of the firm climbed to Rs 1.70 lakh crore.

Hindalco stock gained 2% to Rs 672.45 against the previous close of Rs 657.30 on BSE. Market cap of the firm rose to Rs 1.50 lakh crore.

Metal stock NMDC gained 2% to Rs 66.70 today with a market cap of Rs 58,579 crore.

The BSE metal index was the top gainer among sectoral indices today, rising 553 pts to 29,881.

China is the largest steel producer in the world. The world's largest steelmaker and consumer will "promote restructuring of the steel industry through output reduction", according to an official report on Wednesday.

"We will introduce policies and measures for resolving structural problems in key industries and end the phenomenon of rat-race competition through industrial regulation and upgrading," the report said.

China's steel manufacturers have struggled to generate profits due to a prolonged property downturn. Growing trade frictions against cheap Chinese steel products have affected steel exports outlook this year.

Before the current leg of rally, the metal stocks came under intense selling pressure after new US President Donald Trump said he would soon introduce 25 per cent tariffs on steel and aluminium imports into the US.