The Nifty Metal index dropped 2% on Monday amid global demand growth worries. Heavy selling in SAIL
, JSW Steel
, and Jindal Steel
also led the index’s fall.
The fall could be attributed to investors’ concerns regarding the US economic growth amid weak manufacturing data. The IHS Markit flash purchasing managers index for manufacturing of US in March plunged to a 21-month low, while the services PMI weakened to a two-month low. The flash manufacturing PMI fell to 52.5 from 53 in February, while the services PMI fell to 54.8 from 56. Further, growing worries about an impending US recession, which kept equity in global markets down, fueled the investors’ worries.
Shares of SAIL, Vedanta, and Hindalco, which dropped 3% each, were leading the index’s fall. Shares of Jindal Steel,
JSW Steel, Jindal Stainless (Hisar)
, Hindustan Zinc
, and Tata Steel
also contributed to the fall, declining 2% each. Shares of Welspun Corp
, Hindustan Copper
, and NALCO
also fell 1% each.
However, shares of APL Apollo
cushioned the sharp fall in the index by rising 3%.
Meanwhile, equity benchmark indices were trading in the red on Monday with the Sensex declining 381 points at 37,784 levels. The Nifty also dropped 114 points at 11,342 levels, well below its key level of 11,400.