China will have a weekend policy briefing which is expected to introduce more fiscal stimulus.

What Happened: The briefing on Saturday is expected to announce more fiscal stimulus to help the Chinese economy, according to a Bloomberg report. Market experts see the Chinese finance minister announcing a $283 billion (around ₹23.4 lakh crore) stimulus package in the meeting on Saturday.

Shares of Tata Steel, JSW Steel, Vedanta, Steel Authority of India (SAIL), Jindal Steel and Power gained up to 2% on Friday. 

In September China's central bank announced a 50 basis points cut for reserve requirement ratio (RRR) for banks. Resulting in more money entering into the system rather than banks saving it in their reserves. 

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The Chinese economy has been impacted by weak consumer spending, the burst of a real estate bubble, and debt-riddled local governments. The weakened infrastructure market of China lowers its domestic demand for metal and steel products. 

This prompts the Chinese steel companies to dump their exports at cheap prices across the world including India. This forces Indian steel makers to lower prices causing losses for them.

Stimulus to the Chinese economy is expected to revive demand and hence reduce the cheap steel imports. 

Price Action: Shares of Tata Steel rose 1.53% to ₹162.16.

Shares of JSW Steel gained 1.13% to ₹1,018.80.

SAIL stock increased by 2.05% to ₹132.63.

Shares of Vedanta rose 1.33% to ₹499.05.

Jindal Steel and Power shares surged 2.28% to ₹1,013.30. 

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