Nifty Metal index dips 2% as copper price hits 7-week low; All stocks in red; SAIL, JSPL, Hindalco top bears

At the Nifty Metal index, all stocks were in the red.

Jun 16, 2021 02:06 IST India Infoline News Service

Metal company stocks were under pressure on Wednesday's bearish bandwagon of markets. Investors booked profits after copper prices clocked a 7-week low as concerns about China to further prices triggered a cautious tone in the sector. At the Nifty Metal index, all stocks were in the red.

At around 2.19 PM, Nifty Metal was trading at 5,266.65 lower by 102.30 points or 1.91%. The index has touched an intraday high and low of 5,382.25 and 5,229.60 respectively.

SAIL was the top underperformer plummeting 4% followed by JSPL and Hindalco diving by 2.8% and 2.6% respectively. Stocks like Tata Steel, NALCO and JSW Steel dipped more than 2% each.

Vedanta and Hindustan Zinc plunged by 1.6% and 1.5%, respectively. Adani Enterprises and Welspun Corp tumbled more than 1% each.

Ratnamani, MOIL, NMDC, APL Apollo and Coal India fell between 0.5-1%.

On Wednesday, three-month copper on the London Metal Exchange slid to $9,540 a tonne. Meanwhile, the most-traded July copper contract on the Shanghai Futures Exchange contracted 1.7% to 69,140 yuan ($10,802.62) a tonne in the early deals.

Copper at the London exchange on Tuesday has nosedived by over 8% since touching a record high of $10,747.50 on May 10 this year.

Last week, China's state planner renewed its pledge to step up monitoring of commodity prices, as its inflation reached the highest since 2008.

However, as per the latest Reuters report, China will release its national reserves of copper, aluminium and zinc in batches in the near term to nonferrous processing and manufacturing firms via public bidding, the National Food and Strategic Reserves Administration said without giving a specific number for each metal.

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