Shares of metal companies are under pressure in noon deals after LMEX, a gauge of six metals traded on the London Metal Exchange (LME), hit two-year low on Thursday, August 2, 2012.
The index slipped 3.4% so far in current week, closed at 3,094.80, its lowest level since July, 2010, after European Central Bank inaction disappointed markets and as worries over global growth dragged on the outlook for metals.
“Commodity prices fell on Thursday and copper hit six-week lows after ECB President Mario Draghi failed to offer immediate action to shore up the fragile euro zone economy which the market had expected to come via an announcement of large scale bond purchases,” the Reuters report suggests.
Among the individual stocks Sterlite Industries, Tata Steel, Steel Authority of India, Hindalco Industries, JSW Steel, Sesa Goa, Coal India and Jindal Steel and Power are down by 2-3% on the Bombay Stock Exchange (BSE) at 1125 hours.
The BSE Metal index, the largest loser among sectoral indices, is down 247 points or 2.4% as compared to 177 points or 1% fall in the benchmark Sensex.