Shares of metal companies were under pressure at the bourses on Monday, with the S&P BSE Metal and Nifty Metal indices slipped over 1.5% in intra-day trade today. The metal index globally slipped after the media reports said that China’s state planner warned against commodity price manipulation and vowed to clamp down on speculative trading.
The Nifty Metal index is currently trading lower by 1.10% at 5,042.95 levels. The index has opened at 5,098.45 and touched an intraday low of 5,004.30 in the morning session. Shares of Hindustan Zinc slumped 4.25%, among top loser on the index, followed by JSW Steel which fell 2.75% and shares of SAIL dropped 2.25% on the metal index.
Tata Steel, Jindal Steel, NMDC, Hindalco, NALCO and Ratnamani were also in the negative zone, however, shares of Welspun Corp, Coal India, Vedanta and Adani Ent are gaining in the small range on the Nifty metal index.
According to the National Development and Reform Commission, the country’s top economic planning body said on Monday that “China says it will severely punish violations in commodities markets, ratcheting up a campaign to rein in soaring prices.”
Chinese commodity markets including iron ore, steel, coopers and aluminium firms were collectively summoned on Sunday for interviews over recent price hikes by five government departments responsible for regulating China’s market and industry, as per a Global Times report.
Reacting to this news, prices of steel products and other steel inputs also fell sharply, with rebar on the Shanghai Futures Exchange SRBcv1 down as much as 6.8% in early trade, while hot-rolled coil SHHCcv1 slumped 7.1% and Stainless steel SHSScv1 shed 1.8%.
Meanwhile, equity market indices are bullish despite mixed global cues with the BSE Sensex is currently 50,754, up 214 points or 0.42% and the Nifty50 is currently 15,220, up 46 points or 0.30%.