Metal index down on weak global cues; Hindalco, Tata Steel stocks slip 4%
The Nifty Metal index dropped nearly 2% in the late morning trade amid global sell-off as investor fears were piqued by the escalating Sino-US trade war in the broader Asian markets.
Jindal Stainless (Hisar) Limited dropped 6%, and among top losers in the metal index, followed by Hindustan Copper, Jindal Steel, Welspun Corp, Tata Steel and Hindalco slipped 4% each. JSW Steel, NALCO and MOIL were down 2.5% each, also NMDC, Hindustan Zinc and SAIL were down 1-2%.
As per media reports, US President Donald Trump last week proposed adding 10% tariffs on another $300bn in Chinese imports from September 1, ramping up the trade war between the world’s largest economies shortly after the two sides restarted talks. Further, China’s state media has issued a flood of criticism in recent days at Trump’s threat, even raising the prospect that Beijing may consider cutting off the engagement on trade.
India VIX zoomed 12.82% and is trading at 17.13 levels.
Shares of Indian Bank, Future Consumer, V Mart Retail, YES Bank, Tata Motors (DVR), Tata Motors, Fortis Health, JSPL, Wockhardt, Tata Steel, Hindalco, GAIL India, Bank of India, Motherson Sumi, Escorts and ITC have hit a 52-week low on BSE.
On the political front, Home Minister, Amit Shah, in a statement presented in Rajya Sabha, said that Article 370 and Article 35A will be abrogated. He also proposed a new bill for the reorganisation of Jammu and Kashmir, as per media reports.
The Sensex is down 540 points at 36,578, while the Nifty is trading lower by 163 points at 10,834.
