Metal stocks plunged over 8 per cent in morning trade on the Bombay Stock Exchange on concerns of demand contraction on weak global cues.
Mirroring the downtrend in the metal stocks, the BSE metal index tanked 5.03 per cent to 10,014.72 points with all the 15 components of the sectoral indices trading in the negative territory, losing up to 8 per cent.
Tata Steel, the largest steel maker in the private sector plunged 7.93 per cent to Rs 366.55 on the BSE with nearly 20 lakh shares changing hands at 11:00 hrs.
Sterlite Industries also dipped 8.39 per cent at Rs 546 and JSW Steel dropped to a low of Rs 538, down 6.63 per cent over previous close. Hindustan Zinc dropped 6.37 per cent to Rs 533 while Hindalco was down 5.83 per cent to Rs 73.50.
Marketmen said that fears of fall in the demand of industrial metals on the back of a drop in stock markets globally is exerting pressure on the metal index.
“With globally bulls turning into bears and momentum not picking up, traders are anticipating a demand crunch which further accelerated selling in metal segment,” Ashika Stock Brokers Research Head Paras Bothra said.
Other major index wise losers include Welspun Gujarat (5.02 per cent), Nalco (1.15 per cent), Sesa Goa (1.41 per cent) and State-run SAIL (2.88 per cent).