Metal & mining stocks decline on worries about China's faltering demand

Ten shares of metal and mining companies dropped 1.52% to 5.96% at 11:35 IST on BSE on worries about China's faltering demand amid China's stock market slide.

Meanwhile, the S&P BSE Sensex was down 420.41 points or 1.49% at 27,751.28.

The BSE Metal index had underperformed the market over the past one month till 7 July 2015, falling 2.83% compared with 5.24% rise in the Sensex. The index also underperformed the market in past one quarter, falling 5.38% as against Sensex's 1.21% decline.

Among metal & mining stocks, JSW Steel (down 2.45%), Hindustan Copper (down 2.3%), Vedanta (down 5.96%), Hindustan Zinc (down 2.36%), Jindal Steel & Power (down 2.19%), Tata Steel (down 3.66%), Steel Authority of India (Sail) (down 4.82%), National Aluminum Company (down 1.52%) and NMDC (down 2.17%) declined.

Hindalco Industries slumped 5.03%. With respect to news article titled, "PIL on Hindalco: I-T Dept filed report, estimates that Hindalco dealing with unaccounted cash worth Rs 200 crore - Hindalco paid Rs 7 crore in kickbacks to environment ministry", Hindalco Industries clarified after market hours yesterday, 7 July 2015, that there was nothing new in the allegations and the matter is already under investigation. The company reiterated that neither the diary nor the cash recovered belongs to the company. The Central Bureau of Investigation (CBI) had raided Hindalco's offices in four cities as part of its investigations into alleged illegalities in the allocation of two coal blocks in Odisha.

China's main stock benchmarks have lost more than a third of their value since hitting mid-June highs.

China is the world's largest consumer of steel, copper and aluminum.

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