Metal index at 52-week low, SAIL at 27-mth low

Metal and mining stocks have ended lower in the last six straight trading sessions on negative news flows.

The Karnataka Lokayukta report, the ban on mining in Bellary, poor financial results for the quarter ended June 2011 and weak Chinese manufacturing data dragged the Bombay Stock Exchange (BSE) Metal index to its lowest level since November 2009.

The metal index is down 220 points at 13,622 at 1220 hours and has declined by 9% or 1,312 points in last six trading days, compared with a 4% or 714-points fall in the benchmark Sensex.

JSW Steel has plunged 21% to Rs 685 in the last four days after the Supreme Court suspended all mining operations in the Bellary district of Karnataka till further orders. The Karnataka state Lokayukta report on illegal mining alleges that the company, through its associated companies such as South West Mining, paid bribes to the Karnataka former chief minister Yeddyurappa's children.

Steel Authority of India (SAIL) is trading down 3% at Rs 116, extending Monday’s 5% fall, after reporting a 29% dip in net profit to Rs 838 crore for the first quarter of the current fiscal. The public sector undertaking had posted a net profit of Rs 1,177 crore for the same quarter last fiscal.

Meanwhile, LMEX, a gauge of six metals traded on the London Metal Exchange (LME) dropped 1.6% on Monday, August 1, 2011.

Jindal Steel and Power, JSW Holdings, National Aluminium and Kalyani Steel are trading at their 52-week lows, while Sterlite Industries, Welspun Corp and Jindal Saw are hovering near their one-year lows.