Nifty Metal index dips 3% as copper price hits near 1-month low; All stocks in red; NALCO, SAIL top bears

The most-traded August copper contract on the Shanghai Futures Exchange fell as much as 2.3% to 67,400 yuan ($10,397.38) a tonne, its lowest since June 23.

Jul 20, 2021 11:07 IST India Infoline News Service

Businessman sleeping with bear with down trend graph
Metal company stocks witness broad-based selling pressure on Tuesday's bearish bandwagon of markets. Investors booked profits after Shanghai copper prices hit a near one-month low as a surge in coronavirus cases around the world threatened the outlook of a global economic recovery. At the Nifty Metal index, all stocks were in the red.

At around 11:18 AM, Nifty Metal was trading at 5,167.85 lower by 150 points or 2.82%. The index has touched an intraday high and low of 5,305.70 and 5,161.80 respectively during early trading deals.

NALCO was the top underperformer plummeting 5% followed by SAIL and Vedanta diving by 4.42% and 3.62% respectively. Stocks like Hindalco, Welspun Corp and APL Apollo dipped more than 3% each.

Jindal Steel, Hindustan Zinc tumbles by nearly 3% to drag the sector while, Adani Enterprises and Tata Steel plunged more than 2.5% each.

NMDC and  JSW Steel were under pressure dipped nearly 2.5% each. Ratnamani, Coal India and MOIL fell between 1-2%.

The most-traded August copper contract on the Shanghai Futures Exchange fell as much as 2.3% to 67,400 yuan ($10,397.38) a tonne, its lowest since June 23.

On Tuesday, three-month copper on the London Metal Exchange edged up 0.3% to $9,246 a tonne by 0221 GMT, rebounding from a 2.2% drop to a four-week low in the previous session.

According to the reports, overnight, base metals broadly contracted on the back of strengthening in the US dollar, which rose to a new high since the beginning of April, and the bulk commodities were under pressure collectively.

The National Development and Reform Commission said that it would organise the subsequent batch of national reserves such as copper, aluminium and zinc, and pay close attention to the abnormal fluctuations of market prices, and the net transmission of the reserves will increase significantly compared with the first time. 

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