Metal and mining stocks drop sharply

Key benchmark indices once again regained positive zone in early afternoon trade amid high intraday volatility. At 12:25 IST, the barometer index, the S&P BSE Sensex, was up 23 points or 0.06% at 36,262.62. The Nifty 50 index was up 3.30 points or 0.03% at 10,950.55. Metal and mining stocks dropped sharply as copper prices slumped in global commodity markets.

Volatility struck bourses in early trade as the key benchmark indices reversed initial losses triggered by negative Asian stocks. Indices extended gains and hit intraday high in morning trade. Fresh selling at higher levels once again pulled the key benchmark indices in negative zone in mid-morning trade.

The S&P BSE Mid-Cap index was off 0.49%. The S&P BSE Small-Cap index was off 0.18%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1032 shares rose and 1297 shares fell. A total of 132 shares were unchanged.

Metal and mining stocks dropped sharply as copper prices slumped in global commodity markets.

Vedanta (down 3.47%), JSW Steel (down 1.34%), Tata Steel (down 2.08%), Steel Authority of India (Sail) (down 3.63%), National Aluminium Company (down 2.85%), Hindustan Zinc (down 3.63%), Jindal Steel & Power (down 3.75%), Hindalco Industries (down 3.51%), NMDC (down 1.2%) and Hindustan Copper (down 1.77%) edged lower.

Copper edged lower in the global commodities market. High Grade Copper for September 2018 delivery was currently off 3.57% at $2.7380 per pound on the COMEX.

Shilpa Medicare surged 9.03%. Shilpa Medicare said it received EIR (establishment inspection report) from US Food and Drug Administration (USFDA) for both API manufacturing facilities located at Raichur in Karnataka. This inspection was carried out between 16 and 19 January 2018. The inspection has now been closed by USFDA. The announcement was made during trading hours today, 11 July 2018.

Overseas, Asian stock markets fell after the Trump administration announced it plans to slap tariffs on a further $200 billion of Chinese imports. US stocks had climbed in the regular trading session yesterday, 10 July 2018 as investors focused on the start of earnings season.

The Trump administration pushed ahead with plans to impose tariffs on an additional $200 billion in Chinese goods by releasing a list of targeted products. The 10% tariffs could take effect after public consultations end on Aug. 30. The proposed list of goods includes consumer items such as clothing, television components and refrigerators as well as other technology products, though it omitted some high-profile items like mobile phones.

Earlier, the Trump administration on July 6 imposed 25% duties on $34 billion in Chinese imports. The first round of tariffs covered Chinese products ranging from farming plows to machine tools and communications satellites. China immediately retaliated with duties on the same value of US goods, including soybeans and cars and has promised further retaliation too.

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