Metal shares dip, JSPL plunges 9%

The BSE metal index, the largest loser among sectoral indices, has dipped 3.5% as compared to less than 1% fall in benchmark Sensex

Shares of metal companies are under pressure on the bourses with most of the frontline stocks trading lower by 3-9% on the Bombay Stock Exchange. The BSE metal index, the largest loser among sectoral indices, has dipped 3.5% or 352 points as compared to less than 1% fall in benchmark Sensex.

Jindal Steel and Power (JSPL) has tanked 9% at Rs 343, its lowest level since May 2009 on back of almost two-fold jump in trading volumes. A combined 3.93 million shares have changed hands on the counter so far, against an average around two million shares that were traded daily in past two weeks. The stock have plunged 16% in past three trading sessions on the BSE.

Sterlite Industries, Sesa Goa, Hindalco Industries, JSW Steel, Tata Steel and Hindustan Zinc are down 3-5% on the BSE.

Analyst at Mangal Kesav said that investors sought turned cautious & need more clarity about central bankers' efforts to help stimulate global growth and revive metals demand.

Meanwhile, the latest data showed a 5.4% decline in profit from China's major industrial enterprises for July compared to the year-ago period. China is the world's largest consumer of copper and aluminum.