Metal shares extend fall; Nifty Metal index down 4% in two days
In 2017, metal index rallied 20% against 9.5% rise in Nifty 50 index till Monday.
 "Metal shares extend fall; Nifty Metal index down 4% in two days")
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Shares of metal companies were under pressure and quoting lower for second straight trading sessions on the bourses on profit booking.
NMDC, Jindal Steel & Power (JSPL), Vedanta, National Aluminium Company, Hindalco Industries and Tata Steel were down in the range of 2% to 4% on the National Stock Exchange (NSE).
At 12:15 pm; Nifty Metal index, the largest loser among sectoral indices, was down 2.1% at 3,068 as compared to 0.51% decline in Nifty 50 index. In past two trading sessions, the metal index slipped 4% against 0.69% fall in the benchmark index.
Thus far in calendar year 2017, metal index had outperformed the market by surging 20% against 9.5% rise in Nifty 50 index till Monday.
Hindalco Industries was down 2.5% at Rs 188, extending its Tuesday’s 3.5% decline. The capital raising committee of the company at its meeting held today, i.e. 8th March, 2017 has approved the closure of the qualified institutional placement (QIP) issue. The board approved the issue price of Rs 189.45 per share for the proposed placement of 176.83 million shares.
China last week set its GDP growth target at around 6.5% for 2017, compared with a target range of 6.5 to 7% last year as the world's second largest economy braced for further slowdown of its growth, the PTI reports suggests. CLICK HERE TO READ FULL REPORT
Analysts at JP Morgan remain overweight on Hindalco and Vedanta even though the stocks have materially outperformed the broader indexes over the last 12 months as the underlying commodity environment remains supportive and should allow balance sheets to de-lever.
“However, in the near term, we would not be surprised to see volatility increase and stocks pull back on LME volatility but would use weakness to add to positions,” JP Morgan said in recent report on India Metals.
NMDC, Jindal Steel & Power (JSPL), Vedanta, National Aluminium Company, Hindalco Industries and Tata Steel were down in the range of 2% to 4% on the National Stock Exchange (NSE).
At 12:15 pm; Nifty Metal index, the largest loser among sectoral indices, was down 2.1% at 3,068 as compared to 0.51% decline in Nifty 50 index. In past two trading sessions, the metal index slipped 4% against 0.69% fall in the benchmark index.
Thus far in calendar year 2017, metal index had outperformed the market by surging 20% against 9.5% rise in Nifty 50 index till Monday.
Hindalco Industries was down 2.5% at Rs 188, extending its Tuesday’s 3.5% decline. The capital raising committee of the company at its meeting held today, i.e. 8th March, 2017 has approved the closure of the qualified institutional placement (QIP) issue. The board approved the issue price of Rs 189.45 per share for the proposed placement of 176.83 million shares.
China last week set its GDP growth target at around 6.5% for 2017, compared with a target range of 6.5 to 7% last year as the world's second largest economy braced for further slowdown of its growth, the PTI reports suggests. CLICK HERE TO READ FULL REPORT
Analysts at JP Morgan remain overweight on Hindalco and Vedanta even though the stocks have materially outperformed the broader indexes over the last 12 months as the underlying commodity environment remains supportive and should allow balance sheets to de-lever.
“However, in the near term, we would not be surprised to see volatility increase and stocks pull back on LME volatility but would use weakness to add to positions,” JP Morgan said in recent report on India Metals.
| Company | 30/12/2016 | 06/03/2017 | % chg | LTP | % chg |
| Jindal Steel | 69.10 | 126.00 | 82.34 | 120.40 | -4.44 |
| Bhushan Steel | 40.50 | 57.45 | 41.85 | 54.15 | -5.74 |
| Hindalco Inds. | 155.05 | 199.40 | 28.60 | 187.90 | -5.77 |
| SAIL | 49.20 | 62.20 | 26.42 | 59.35 | -4.58 |
| Tata Steel | 391.10 | 492.95 | 26.04 | 471.90 | -4.27 |
| Vedanta | 216.30 | 266.45 | 23.19 | 252.50 | -5.24 |
| Natl. Aluminium | 64.95 | 79.20 | 21.94 | 75.85 | -4.23 |
| Hindustan Zinc | 255.45 | 309.30 | 21.08 | 296.50 | -4.14 |
| NMDC | 123.45 | 146.45 | 18.63 | 141.00 | -3.72 |
| APL Apollo | 913.55 | 1072.20 | 17.37 | 1087.85 | 1.46 |
| JSW Steel | 162.46 | 184.80 | 13.75 | 177.60 | -3.90 |
| Nifty Metal | 2652.50 | 3189.40 | 20.24 | 3067.80 | -3.81 |
| Nifty 50 | 8185.80 | 8963.45 | 9.50 | 8901.85 | -0.69 |
| LTP : Last traded price in Rs at 12:15 pm | |||||
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