Metal shares extend fall, Hindalco at 3-yr low

The BSE metal index has down 4% in past two trading sessions as compared to less than 1% fall in benchmark Sensex.

Shares of metal companies are under pressure second day in a row falling up to 5% in noon trades on the Bombay Stock Exchange (BSE).

Sterlite Industries, Sesa Goa and Steel Authority of India have declined around 5% each. Hindalco Industries is down 2.5% at Rs 104, its lowest level since September 2009. JSW Steel and Tata Steel are too down 1-2% on the BSE.

The BSE metal index down 108 points at 9,879 at 1325 hours declining 4% in past two trading sessions as compared to less than 1% fall in benchmark Sensex.

On Tuesday, copper & other metals declined on concerns about the global economy and mixed US economic data's released that did not convince investors the Federal Reserve will unleash a new round of stimulus later this week.

 

Also, big metal consumer China's industrial sector posted a sharp profit drop in July, showing that slackening domestic and external demand has weighed on corporate earnings, the Reuters report suggests.