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Metal and mining stocks melt as copper prices decline

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Key benchmark indices continued to trade with negative traction in early afternoon trade. At 12:25 IST, the barometer index, the S&P Sensex, was down 112.10 points or 0.37% at 30,546.66. The 50 index was down 54.95 points or 0.58% at 9,470.80. Weak global stocks played the spoilsport.

Today's slide was led by index heavyweights ITC, HDFC and Reliance Industries (RIL). Metal and mining stocks dropped as copper prices fell in global commodity markets. Auto stocks fell.

Key benchmark indices saw a gap-down opening following weak global cues as concerns over President Donald Trump's administration spooked investors. Stocks continued to trade with weakness in morning trade. Volatility ruled the roost in mid-morning trade as the key benchmark indices cut losses soon after extending intraday slide to hit fresh intraday low.

The S&P Mid-Cap index was down 1.12%. The S&P Small-Cap index was down 0.88%. The fall in both these indices was higher than the Sensex's decline in percentage terms.

The broad market depicted weakness. There were over two losers against every gainer on 1,739 shares declined and 722 shares rose. A total of 146 shares were unchanged.

Metal and mining stocks dropped as copper prices fell in global commodity markets.

Vedanta (down 2.27%), JSW Steel (down 2.93%), Tata Steel (down 0.24%), Steel Authority of India (Sail) (down 1.52%), National Aluminium Company (down 1.11%), Hindustan Zinc (down 2.46%), Jindal Steel & Power (down 2.45%), Hindalco Industries (down 2.57%) and NMDC (down 1.67%) edged lower.

jumped 6.03% after net profit spurted 6919% to Rs 40.71 crore on 58.4% increase in net sales to Rs 513.68 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 17 May 2017.

Copper edged lower in the global commodities market. High Grade Copper for July 2017 delivery was currently off 0.9% at $2.5235 per pound on the COMEX.

Auto stocks fell. Tata Motors (down 1.55%), Maruti Suzuki India (down 1.01%), Mahindra & Mahindra (M&M) (down 1.03%), Eicher Motors (down 1.78%), Ashok Leyland (down 0.68%), Escorts (down 1.38%), Hero MotoCorp (down 1.17%) and TVS Motor Company (down 0.2%) declined.

Bajaj Auto slipped 1.22% ahead of its Q4 March 2017 result today, 18 May 2017.

Mangalore Refinery & Petrochemicals rose 3.86% after net profit spurted 42.6% to Rs 1942.42 crore on 43.5% increase in net sales to Rs 13325.76 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 17 May 2017.

Mangalore Refinery & Petrochemicals' earnings before interest, tax, depreciation and amortization (EBITDA) increased by 80% to Rs 3,189 crore in Q4 March 2017 over Q4 March 2016.

Smartlink Network Systems fell 1.69% after net profit fell 72% to Rs 0.70 crore on 50.4% decline in net sales to Rs 3.97 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 17 May 2017.

Overseas, Asian stocks were trading lower as fears over the fallout from turmoil in Washington prompted investors to unload risky assets such as equities. In US, the Nasdaq yesterday, 17 May 2017 saw its worst one-day decline since the day after U.K.'s vote to exit from the European Union rattled markets, as turmoil in Washington cast doubt on President Donald Trump's pro-growth agenda that had helped to drive stocks to records.

Political uncertainty sent the S&P 500 index down 43.64 points, or 1.8%, to 2,357.03. The Dow sank 372.82 points, or 1.8%, to finish at 20,606.93. The Nasdaq Composite Index dropped 158.63 points, or 2.6%, to end at 6,011.24.

The administration is facing scrutiny about whether the president asked the former head of the FBI to drop an investigation, as well as questions about his handling of secret intelligence. The Justice Department named a special counsel to oversee the FBI's investigation of Russia's efforts to influence the 2016 election.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 18 2017. 12:30 IST
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