Metals and mining may underperform in the second half

The price movements have been driven to a large extent by perceptions that global growth will get slower in 2019

Metals and mining was the best performing sector in the September quarter. The global commodity cycle was up strongly for non-precious metals, and for energy. In addition, tariff protections added to the margins for metals and helped benefit local steel manufacturers, while the bullish global trends benefited Coal India and NMDC; also, to some extent, Oil & Natural Gas Corporation and Oil India.

The reversal in crude oil prices has been highlighted but the reversal in industrial metals is also worth noting. Steel hit a record high earlier in the year but prices have moderated. Ditto for copper, whose prices