Metal stocks continue to reel under pressure on yuan worries

Metal stocks continued to reel under pressure for the second straight session today, falling up to 8 per cent, as China -- the world's biggest consumer of the commodity -- devalued its currency.
Shares of Vedanta Ltd plunged 8.03 per cent, while Hindalco Industries tumbled 7.21 per cent on the BSE.
Among others, Jindal Steel & Power Ltd dipped 5.58 per cent, Coal India Ltd lost 5.53 per cent, National Aluminium Company was down 3.81 per cent, NMDC (3.01 per cent), Hindustan Zinc (2.91 per cent) and JSW Steel (2.12 per cent).
The BSE metal index fell by 4.37 per cent to close at 7,918.87.

"Yuan's surprise devaluation for the second day has stoked fears of a competitive devaluation, at least among emerging economies and has thrown the currency dynamics into a fresh flux," said Anand James, Co Head Technical Research Desk of Geojit BNP Paribas.
Chinese woes of Indian steelmakers will increase further following the surprise devaluation of the yuan, as it will significantly curtail the domestic players' export competitiveness, a Care report said today.
China's central bank yesterday devalued its tightly controlled currency by close to 2 per cent to boost exports, amid a slowdown in the world's second-largest economy and the recent stock market crash.

Meanwhile, in the broader market the Sensex ended at 27,512.26, down 353.83 points.