Nifty Metal slips 2% led by NALCO, Vedanta, Hindalco

Shares of NALCO, which plunged 8%, was leading the index’s fall.

Feb 11, 2019 11:02 IST India Infoline News Service

The Nifty Metal index slipped 2% in Monday’s morning trade on weak global cues. Shares of NALCO, Vedanta, Hindalco, Welspun Corp, Jindal Steel, and MOIL were leading the index’s fall.

The index was down amid growing worries regarding weak global growth along with caution over US-China trade talks and concerns over the recurrence of the government's shutdown in the US.

A recent spate of mixed to weak economic data from China, Euro Zone, UK, and the US have spurted worries over global economic slowdown, which in turn, is denting the demand outlook for metals.

On the trade talk front, deputy level negotiations between the US and China are expected to be held on Monday followed by high-level talks between Chinese Vice Premier Liu He and US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer in Beijing on February 14 and 15, 2019.

Shares of NALCO, which plunged 8%, were leading the index’s fall. Shares of Vedanta, Hindalco, and Welspun Corp also contributed to the fall, declining 4% each. Shares of Jindal Steel declined 3%, while those of MOIL, JSW Steel, and Hindustan Copper also dropped 2% each. SAIL and Tata Steel fell 1% each.

Shares of Tata Steel declined after the company’s results for Q3FY19 missed expectations due to a sharp fall in sales volumes and higher raw material costs. Its revenue increased by 24.5% yoy to Rs41,220cr (expectation Rs41,382cr).

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