Nifty Metal under pressure on broad-based selloff; Hindustan Zinc, Hindalco, JSW Steel led bearish tone

Nifty Metal index traded lower and hovered between an intraday high and low of 5,733.10 and 5,608.40 respectively due to a broad-based selloff in heavyweight stocks.

Sep 30, 2021 02:09 IST India Infoline News Service

Metal company stocks were under pressure on Thursday amid the Evergrande crises and China's power shortage worries. Base metal prices have dived in the past couple of days. On Thursday, the Nifty Metal index traded lower and hovered between an intraday high and low of 5,733.10 and 5,608.40 respectively due to a broad-based selloff in heavyweight stocks.

At around 2.51 pm, Nifty Metal is trading at 5,613.40 lower by 47.85 points or 0.85%. The index had 12 scrips on the decline side and 3 scrips on the advance front.

Hindustan Zinc and Hindustan Copper were top underperformers plunging by 3.4% and 2.5% respectively. JSW Steel dived 1.8%.

Stocks like Ratnamani, NALCO, Vedanta, APL Apollo and Adani Enterprises shed more than 1% each.

Hindalco and Tata Steel dropped 0.8% and 0.6%. As per reports, Jefferies believes that Hindalco and Tata Steel are still reasonably valued.

As per Jefferies, the Evergrande crises coupled with power shortages has clouded the metal demand outlook. That said,  production cuts and easing policy measures will be key to balance markets and prices for the sector.

Moreover, on the Nifty Metal, SAIL and NMDC traded flat but in red.

On the contrary, Welspun Corp was the top gainer soaring nearly 8% followed by JSPL advancing 1.2%. Coal India traded on a muted note. 

As per media reports, copper prices in London were on track for their first quarterly loss since March 2020 as the prospect of the U.S. Federal Reserve scaling back its pandemic stimulus put pressure on the metal often used as a gauge of global economic health.

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