Nifty Metal extends selloff as metal prices dive on stronger dollar; Adani Enterprises, Coal India, Hindalco drag; Apl Apollo hits new high

Nifty Metal emerged as the top bear led by a broad-based selloff with heavyweight stocks dragging the most.

Jun 17, 2021 01:06 IST India Infoline News Service

Businessman sleeping with bear with down trend graph
Metal company stocks extended their downside even on Thursday as base metal prices globally plunged on the back of stronger dollar after the US Federal Reserve hinted at two interest rate hikes by 2023. Nifty Metal emerged as the top bear led by a broad-based selloff with heavyweight stocks dragging the most.

At around 1.49 pm, Nifty Metal was trading at 5,141.60 down by 74.60 points or 1.43%. The index has plunged to an intraday high and low of 5,216.35 and 5,101.45 respectively.

Adani Enterprises was the top underperformer diving 5% followed by Coal India plummeting 1.6%. Stocks like Hindalco, Welspun Corp, NALCO and JSPL dipped between 1-1.5%.

Hindustan Zinc shed nearly 1%, while SAIL slid 0.6%. JSW Steel and Tata Steel tumbled 0.5% each.

Vedanta stock was flat, however, in the red.

On the contrary, APL Apollo was the top gainer surging by over 6%. The stock has also touched a new 52-week high of Rs1,598 per piece in early deals.

Other stocks like MOIL, Ratnamani and NMDC jumped marginally.

On Thursday, the three-month copper on the London Metal Exchange CMCU3 slipped 1.5% and was around $9,520 a tonne. The commodity has contracted as much as 2.6% earlier in the session to the April 23 low of $9,415.

Meanwhile, the July copper contract on the Shanghai Futures Exchange SCFcv1 tumbled by 0.1% to 68,950 yuan ($10,735.19) a tonne and was moving for its fifth straight session of losses.

It is being known that a strong dollar generally makes greenback-priced metals more expensive and results in less attractiveness for other currencies holders.

The US benchmark dollar index recorded its strongest single-day gain in 15 months after the US Federal Reserve kept benchmark interest rates near zero, however, the Fed officials further signalled for two hikes in the rates by end of 2023.

Additionally, also, China's state planners decision to offload reserves of copper further pressured base metal prices. 

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