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Nifty Auto, Metal, Media indices hit 52-wk lows on Coronavirus woes

Nifty Metal index tumbled 6.6 per cent to 2,134, while Nifty Media index slipped 5.5 per cent to 1,518, and Nifty Auto was down 4 per cent to 6,662, as against a 3.9 per cent decline in the Nifty50

SI Reporter  |  Mumbai 

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A sharp fall in equities on concerns over a Coronavirus-led slowdown made three sectoral indices hit their respective 52-week lows today

A sharp fall in equities on concerns over a Coronavirus (COVID-19)-led slowdown made three sectoral indices - Nifty Auto, and Nifty Media - hit their respective 52-week lows on the National Stock Exchange (NSE) on Friday.

index tumbled 6.6 per cent to 2,134, while Nifty Media index slipped 5.5 per cent to 1,518, and was down 4 per cent to 6,662, as against a 3.9 per cent decline in the benchmark Nifty50 index to 10,827 points on the NSE in intra-day trade today.

Tata Steel, JSW Steel, Hindalco Industries, Steel Authority of India (SAIL), Hindustan Copper and Vedanta from the index slumped over 7 per cent. According to analysts, Coronavirus is likely to keep domestic steel prices under pressure in the near term as demand pick-up has so far belied expectations.

Analysts at SBICAP Securities, for instance, think the pressure on prices from imports in the near term will be lower due to logistics disruption in exporting countries. However as the logistics normalise, given the lower global prices and lack of demand domestically, domestic prices may come under pressure.

"Nevertheless, the general market expectation is that Chinese government could announce stimulating measures which could eventually lift steel prices globally going into Q2CY20," the brokerage firm said metals & mining sector update.

Meanwhile, Exide Industries and Apollo Tyres from the index hit their respective 52-week lows. Tata Motors, Bosch, Motherson Sumi Systems, Ashok Leyland, Hero MotoCorp, Eicher Motors and MRF from the index skid more than 5 per cent on the NSE.

Disruption in supply of parts from China due to COVID-19 and switch to BS-VI norms adversely affected automobile sales in February 2020. Analysts at Dolat Capital expect the recovery in the PV segment to be faster than the 2W/CV segments.

PVR, INOX Leisure, Zee Entertainment Enterprises, Balaji Telefilms, Dish TV Network, TV18 Broadcast, Network18 Media & Investments and Sun TV Network were down in the range of 5 per cent to 10 per cent in intra-day trade.

First Published: Fri, March 06 2020. 11:17 IST
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