Nifty Metal index hits two-month low; Hindalco, Vedanta down 3%

STOCK MARKET - Shares of metal companies were trading under pressure with the Nifty Metal index hitting its two-month low on the National Stock Exchange (NSE) on weak base metal prices.

Hindalco Industries, Hindustan Zinc and Vedanta dipped 3%, Hindustan Copper, Jindal Steel and Power, Tata Steel and National Aluminium Company (Nalco) down 2% on the NSE.

At 11:39 AM; the Nifty Metal index, the largest loser among the sectoral indices, was down 1.8% at 3,536 points as compared to 0.46% decline in the benchmark Nifty 50 index. The metal index hit an intra-day low of 3,535, its lowest level since October 3, 2017.

In past one month, Nifty Metal index has underperformed the market by falling 10.5% against 3.6% decline in the benchmark index. Hindalco Industries, Nalco, Vedanta, Moil, Hindustan Copper and Hindustan Zinc were down more than 11% during the period.

LMEX, a gauge of six metals traded on the London Metal Exchange (LME) was down 2.8% at 3,115 on Tuesday, closed at its lowest level since September 27, 2017. The index has fallen 5.3% in past seven trading sessions on LMEX.

Shanghai copper fell more than 3% on Wednesday, tracking a steep drop on the LME as investors wound in profits on concerns China could see a weaker first half of next year, the Reuters report suggested. CLICK HERE TO READ FULL REPORT.