 "Nifty Metal index hits two-month low; Hindalco, Vedanta down 3%")
Shares of metal companies were trading under pressure with the Nifty Metal index hitting its two-month low on the National Stock Exchange (NSE) on weak base metal prices.
Hindalco Industries, Hindustan Zinc and Vedanta dipped 3%, Hindustan Copper, Jindal Steel and Power, Tata Steel and National Aluminium Company (Nalco) down 2% on the NSE.
At 11:39 AM; the Nifty Metal index, the largest loser among the sectoral indices, was down 1.8% at 3,536 points as compared to 0.46% decline in the benchmark Nifty 50 index. The metal index hit an intra-day low of 3,535, its lowest level since October 3, 2017.
In past one month, Nifty Metal index has underperformed the market by falling 10.5% against 3.6% decline in the benchmark index. Hindalco Industries, Nalco, Vedanta, Moil, Hindustan Copper and Hindustan Zinc were down more than 11% during the period.
LMEX, a gauge of six metals traded on the London Metal Exchange (LME) was down 2.8% at 3,115 on Tuesday, closed at its lowest level since September 27, 2017. The index has fallen 5.3% in past seven trading sessions on LMEX.
Shanghai copper fell more than 3% on Wednesday, tracking a steep drop on the LME as investors wound in profits on concerns China could see a weaker first half of next year, the Reuters report suggested. CLICK HERE TO READ FULL REPORT.
According to Fitch Ratings, the steel demand in China will be slightly lower in 2018 from 2017 on slowing property construction but supply will drop more due to capacity rationalisation and the enforcement of more stringent environmental protection regulations on steelmakers.
For the Indian market, we expect demand growth of around 5% in 2018, driven by a sustained increase in government infrastructure spending, the rating agency said in latest report.
Hindalco Industries, Hindustan Zinc and Vedanta dipped 3%, Hindustan Copper, Jindal Steel and Power, Tata Steel and National Aluminium Company (Nalco) down 2% on the NSE.
At 11:39 AM; the Nifty Metal index, the largest loser among the sectoral indices, was down 1.8% at 3,536 points as compared to 0.46% decline in the benchmark Nifty 50 index. The metal index hit an intra-day low of 3,535, its lowest level since October 3, 2017.
In past one month, Nifty Metal index has underperformed the market by falling 10.5% against 3.6% decline in the benchmark index. Hindalco Industries, Nalco, Vedanta, Moil, Hindustan Copper and Hindustan Zinc were down more than 11% during the period.
LMEX, a gauge of six metals traded on the London Metal Exchange (LME) was down 2.8% at 3,115 on Tuesday, closed at its lowest level since September 27, 2017. The index has fallen 5.3% in past seven trading sessions on LMEX.
Shanghai copper fell more than 3% on Wednesday, tracking a steep drop on the LME as investors wound in profits on concerns China could see a weaker first half of next year, the Reuters report suggested. CLICK HERE TO READ FULL REPORT.
According to Fitch Ratings, the steel demand in China will be slightly lower in 2018 from 2017 on slowing property construction but supply will drop more due to capacity rationalisation and the enforcement of more stringent environmental protection regulations on steelmakers.
For the Indian market, we expect demand growth of around 5% in 2018, driven by a sustained increase in government infrastructure spending, the rating agency said in latest report.
| COMPANY | LATEST | ONE-MONTH BEFORE | LOSS(%) |
| NATL. ALUMINIUM | 76.90 | 94.55 | -18.7 |
| VEDANTA | 278.70 | 338.90 | -17.8 |
| MOIL | 220.55 | 261.50 | -15.7 |
| WELSPUN CORP | 129.70 | 153.60 | -15.6 |
| HINDALCO INDS. | 232.30 | 272.95 | -14.9 |
| HIND.COPPER | 89.85 | 103.65 | -13.3 |
| HIND.ZINC | 286.65 | 323.75 | -11.5 |
| S A I L | 76.30 | 84.05 | -9.2 |
| JSW STEEL | 244.05 | 268.00 | -8.9 |
| COAL INDIA | 265.90 | 286.35 | -7.1 |
| TATA STEEL | 663.00 | 706.80 | -6.2 |
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