Rising cases of coronavirus put a question mark over metal stocks rally

Analysts see downside risk in stocks as the world economy faces the prospects of fresh lockdowns

A sudden and sharp fall in the equity markets on Monday not only brought fear back on the Street, but also raised a question mark over the sustainability of the rally in metal stocks. Metal producers, such as Tata Steel, Hindalco, JSW Steel, Hindustan Zinc, Steel Authority of India, and National Aluminium, saw big cut in their shares on Monday as investors fretted about the future trajectory of the demand and prices of industrial metals.

This is a sharp reversal for the sector that has been a rally leader until recently. The combined market capitalisation of India’s top eight industrial metal