Metal stocks decline on weak IIP data

Led by Tata Steel and JSW Steel,metal stocks suffered a setback on the bourses.

Led by Tata Steel and JSW Steel,metal stocks suffered a setback on the bourses today on reports of a sharp decline in industrial growth data for September and weak trend in the entire base metal pack at the London Metal Exchange,dragging down the sectoral index by 3.31 per cent.

The Bombay Stocks Exchange metal stocks index emerged as the third worst performer among sectoral indices,falling by 581.64 points,or 3.31 per cent to 17,014.26 with all the 12 constituents ending in negative zone.

Meanwhile,the BSE benchmark Sensex continued its slide for the third straight session and lost another 432.20 points,or 2.10 per cent at 20,156.89 points

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Selling pressure in metal stocks gathered momentum after industrial growth almost halved to 4.4 per cent in September against 8.2 per cent a year ago.

Besides,fall in metal prices at the London Metal Exchange on concerns that China may step up measures to tighten its economic policy,which would curb demand for industrial metals,also weighed heavy on them,analysts said.

“Major sell-off by funds driven by a weak trend in base metals in global markets and slowing industrial growth dragged down metal stocks,” said Deepak Pahwa,a Delhi-based stock broker.

Tata Steel,the largest alloy-maker in the private sector,fell sharply by 3.96 per cent to Rs 606.30,while JSW Steel ended 3.77 per cent down at Rs 1,279.70.

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Sterlite Industries,the country’s leading copper producer,was badly hit too and closed 2.31 per cent down at Rs 181.75 as metal prices fell at the LME.

Stocks of Sesa Goa,country’s largest iron ore exporter,lost 1.69 per cent to Rs 333.50.

Other losers were Hindalco which slipped by 4.72 per cent to Rs 223,Nalco by 2.10 per cent to Rs 396.65,Hindustan Zinc fell by 2.88 per cent to Rs 1,238.70,Jindal Steel and Power by 3.22 per cent to Rs 686.60 and Welspun Corp by 2.59 per cent to Rs 259.35.

At the London Metal Exchange copper for three-month delivery fell by 2.3 per cent to USD 8,625 per tonne.