Metal stocks decline amid fall in commodities prices

Metal and mining stocks edged lower at 15:15 IST on BSE as commodities prices declined in international market as investors raised doubts over China demand for metals.

Hindustan Copper (down 4.12%), Jindal Steel & Power (down 3.63%), Hindalco Industries (down 3.34%), Hindustan Zinc (down 3.12%), Steel Authority of India (down 2.81%), NMDC (down 2.88%), JSW Steel (down 2.63%), Vedanta (down 2.27%), National Aluminium Company (down 2.56%) and Tata Steel (down 1.18%) declined.

Meanwhile, the S&P BSE Sensex was down 196.05 points or 0.6% at 32,606.39. The S&P BSE Metal index fell 2.07%, underperforming the Sensex.

The commodities prices in international market declined sharply over concerns of slowdown of Chinese infrastructure spending. Build up of copper inventories was also the cause for further bearishness, reports suggested.

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

The S&P Metal index had underperformed the market over the past one month till 5 December 2017, sliding 8.92% compared with the Sensex's 2.62% fall. The index had also underperformed the market over the past one quarter, declining 0.43% as against the Sensex's 3.12% rise. The index had, however, outperformed the market over the past one year, advancing 29.2% as against the Sensex's 24.49% rise.

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