Nifty Metal nosedive on broad-based selloff; SAIL, JSPL, JSW Steel, Tata Steel top bears

11 Jan 2022 , 01:08 PM

Indian metal stock under pressure on Tuesday as experts downgrades target price in steel companies citing contraction in alloy prices and high raw material costs. Nifty Metal has touched an intraday high and low of 5,707.65 and 5,604.80. The index has dropped by a little over 2% so far today as heavyweight stocks take a toll.

At around 12.46 pm, Nifty Metal was trading at 5,639.60 lower by 79.20 points or 1.38%. On the index, 2 scrips advanced and 12 scrips declined.

SAIL was the top bear plunging nearly 4% followed by JSPL tumbling nearly 3%. JSW Steel and Tata Steel dipped over 2.2% each. Vedanta slipped 1.8%, Coal India shed 1.4%.

Stocks like Ratnamani, Hindustan Zinc, Welspun Corp, Hindalco and Hindustan Copper traded flat to marginally down.

On a positive note, Adani Enterprises and APL Apollo traded marginally up. NALCO stock muted.

The December 2021 (Q3FY22) quarterly results will influence the markets outlook.

Analysts optimism in Indian metals dimmed as weak macro and demand fears in China weigh on metal prices. China has scrapped import tariff on lead battery scrap starting this month for diversifying battery raw-material procurement and cushion secondary lead production cost pressures.