Metal stocks today witnessed a huge selling pressure with a fall of as much as 8 per cent on fears of a demand slow down globally, after China -- the world's biggest consumer of metals -- saw a huge sell-off in its equities.
Metal stocks today witnessed a huge selling pressure with a fall of as much as 8 per cent on fears of a demand slow down globally, after China — the world’s biggest consumer of metals — saw a huge sell-off in its equities.
Shares of Vedanta slumped 7.85 per cent, Steel Authority of India Ltd declined by 6.09 per cent, while Hindalco plunged 5.13 per cent on the BSE.
Vedanta was the top loser among the 30-Sensex stocks.
Tata Steel fell by 4.72 per cent, JSW Steel was down 3.13 per cent, NMDC (2.30 per cent), Hindustan Zinc (1.95 per cent), National Aluminium Company (1.90 per cent) and Jindal Steel & Power Ltd (1.09 per cent).
The BSE metal index ended 3.89 per cent lower at 8,833.51.
Metal stocks bore the brunt after base metals led by copper fell to multi-year lows in Shanghai amid a stock market rout in China, stoking fears that the sell-off may trigger a slowdown in the world’s biggest metals consumer.
Fall in the Chinese stock market brought jitters to commodity prices, leading to a plunge in stocks of metal companies.
Sentiment took a big blow after China mainland index Shanghai Composite saw a sharp correction despite additional measures by the government to shore up the tumbling market.
“Markets opened for the day on a weaker note and remained in the red through the dayu2019s trading session. Markets worldwide corrected on the back of concerns about a probable Greece exit and new renewed fears over Chinese markets,” said Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio.
In the broader market the BSE benchmark Sensex ended with a sharp loss of 483.97 points at 27,687.72.