The Nifty Metal index crashed 16 per cent in May, its sharpest monthly fall since March 2020 when it sank nearly 30 per cent due to the demand shock created by the spread of covid-19 pandemic.
This month’s fall comes on the back of the government's decision to impose export duty on steel in a bid to cool off domestic prices.
The last week’s decision has led to a sharp selloff in metal stocks with analysts rushing to lower earnings growth and price targets. From this year’s peak of 6,775 on April 11, the Nifty Metal index is down 21 per cent. Globally, steel prices have softened since mid-April.