Business Standard

Metals' loss is infrastructure and capital goods companies' gain

Interest rate hikes, however, remain a pet peeve

Photo: Bloomberg
Premium

In India, the impact of a global correction in metal prices is beginning to show, with the BSE Metal Index, for instance, falling as much as 6 per cent in five days. Photo: Bloomberg

Viveat Susan Pinto Mumbai
A decline in global prices of metals - both ferrous and non-ferrous - has brought firms in user industries, such as capital goods and infrastructure (infra), some respite. These companies have been reeling from the impact of commodity inflation for some time now, pushing many to give a bleak outlook on margins.

That scenario is undergoing change, with metals like aluminium, copper, nickel, tin, and steel correcting sharply in recent weeks.

While the metal index on the London Metal Exchange, which tracks base metals like aluminium, copper, lead, nickel, tin, and zinc, corrected nearly 2 per cent in the past

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in