Nifty at 10,400; metal stocks down for 5th day

Key benchmark indices reversed early trend and traded with losses in morning trade. The Nifty traded at 10,400 level. Metal stocks continued to witness selling pressure. At 10:27 IST, the barometer index, the S&P BSE Sensex, was down 63.67 points or 0.18% at 35,571.28. The Nifty 50 index was down 49.45 points or 0.47% at 10,402.

The broader market traded lower. The S&P BSE Mid-Cap index was down 0.69% while the S&P BSE Small-Cap index was down 0.32%.

The market breadth, indicating the overall health of the market, was almost even. On the BSE, 902 shares rose and 970 shares fell. A total of 118 shares were unchanged. In Nifty 50 index, the breadth was negative with 15 stocks advancing while 35 stocks declining.

Buzzing Index:

The Nifty Metal index slumped 1.4% to 1,991.70, extending its losing streak to fifth consecutive session. The index has tanked 14.18% in last five trading sessions from its previous closing high of 2320.75 posted on 3 March 2020.

Prices of industrial metals continued to remain under pressure as countries failed to contain COVID 19 virus which can heighten worries of a slowdown in global economic growth. China is reportedly the largest producer and consumer of industrial metals. Given such a dominant market share any slowdown in the Chinese economy has a major impact on metal prices and global markets.

Jindal Steel & Power (down 2.78%), JSW Steel (down 2.75%), Hindalco Industries (down 2.58%), Tata Steel (down 2.58%), NMDC (down 2.1%), Vedanta (down 1.63%), Tata Metaliks (down 0.56%) and National Aluminium Company (down 0.16%) were top losers in metal segment.

Stocks in Spotlight:

ABB India was down 2.30%. The company informed that its board approved the sale of its solar inverter business on slump sale basis to Marici Solar India for value of Rs 100.6 crore. The company's board, on 9 July 2019, had granted in-principle approval for sale of company's solar inverter business to the Italian company, FIMER S.p.A. The board's stake sale decision is in line with ABB Group's strategy of ongoing systematic portfolio management to strengthen competitiveness, focus on quality of revenue and higher growth segments.

Wonderla Holidays slumped 3.15%. Wonderla Holidays said that the company has decided to temporarily close Kochi park from 11 March to 20 March, 2020 in view of the emerging situation in the State of Kerala, consequent to the reported coronavirus cases

Goa Carbon declined 4.2% to Rs 181.25 after the company said its production tanked 86.81% to 2378 MT in February 2020 from 18026.80 MT in February 2019. On a sequential basis, production declined 86.33% from 17,393.540 MT reported in January 2020.

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