Nifty Metal index slips over 4%, Tata steel was the top drap performance
Published On: Monday, September 20, 2021 | By: Team KnowMyStock
Shares of metal companies came under heavy selling pressure on Monday with the Nifty Metal index slipping 4.5 percent on the National Stock Exchange (NSE) in the intra-day trade. The Nifty Metal index has tumbled by nearly 250 points so far today with an intraday low of 5,683.85. The performance comes after the country's copper imports recorded double-digit growth for the June 2021 quarter by a whopping 26% to 60,766 tonnes in the quarter ending June 2021 (Q1FY22) compared to 48,105 tonnes imports witnessed in the same quarter a year ago. A decline in copper price on the back of a stronger dollar further added to the sell-side in stocks globally. Tata Steel was the top drag performance in the index tumbling by 10% as some analysts give a sell target on the company's stock.
However, last week, Moody's Investors Services upgraded the company's corporate family rating to Ba1 from Ba2 due to better-than-anticipated operating performance this fiscal year and a step-change reduction in gross debt that has materially strengthened its credit metrics. Moody's rating outlook remains stable.
The rest of the Nifty metal stocks like Jindal Steel and Power, Hindalco Industries, National Aluminium Company, JSW Steel, Steel Authority of India (SAIL), Vedanta and NMDC dropped between 5 and 7 per cent.
The goods and services tax (GST) rate on ores and concentrates of metals such as iron, manganese, etc, has been raised from 5 per cent to 18 per cent. On the global front, metal prices were broadly lower as the US dollar hit a 3-week high. A stronger dollar results in expensive greenback-priced metals.
Tags: Niftymetal Tatasteel Copper metalstock
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