Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Commodities»Tata Steel, SAIL, Hindalco, Vedanta share prices declined 5-7%: Metal index down 5%. Here’s why
    Commodities

    Tata Steel, SAIL, Hindalco, Vedanta share prices declined 5-7%: Metal index down 5%. Here’s why

    August 5, 20243 Mins Read


    Stock Market today: Tata Steel, Steel Authority of India Ltd , NMDC, Hindalco Industries Ltd , Vedanta , Hindustan Copper Hindustan Zinc Ltd were prominent gainers amongst the metal stocks that led to a decline in the Nifty Metal Index.

    The Nifty Metal Index during the intraday trades on Monday, slipped to lows of 8,797.60, marking a decline of 5.5% over the previous close of 9,314.55. The global slow down concerns leading to heightened demand concerns has been one of the key reasons for the decline in the metal stocks.

    The recession concerns in the US have increased leading to a steep decline in the global markets. The Benchmark indices Sensex and the Nifty also corrected more than 3% during the intraday trade on Monday.

    Steel Authority of India Ltd (SAIL), Tata Steel, Hindalco Industries, Hindustan Zinc Ltd, Hindustan Copper and Vedanta Industries share prices declined 5-7% on Monday during intraday trades.

    JSW Steel Ltd, Jindal Steel and Power Ltd, NMDC share prices also saw steep corrections of more than 4%

    The cuts however were deeper in the Non Ferrous stocks. The rise in Aluminium, Copper, Zinc prices on the London Metal Exchange has been leading to a rally in Vedanta, Hindalco, Hindustan Zinc, Hindustan Copper share prices. However fears of global recession mean that these base metal prices as that of Aluminium, Copper, Zinc Lead and others can fall significantly and lead to fall in profitability of companies as Vedanta, Hindalco, Hindustan Zinc, Hindustan Copper among others.

    Notably the Aluminium, Copper prices though still healthy are already lower from peaks in May. Aluminum prices have corrected by ~18% in the past two months, reversing all gains of 1QFY25, said analysts at Kotak Institutional Equities. Kotak analysts already have trimmed LME aluminum price forecast by 2% to $2,450 a ton and 2,550 a ton in FY2025 and FY26 respectively.

    The price volatility as per analysts highlights the fragile fundamentals, as weaker shipment data in 2QCY24 suggests weak demand and rising supply with the ramp-up of idle Aluminium smelters in Yunnan, China, on the back of an improved power situation. The eyes thereby remain on the possibility of rate cuts by the Fed and thereby some pick up in demand from October to December quarter 2024, which can mitigate further downside risk.

    The global slowdown concerns are also not positive for Steel companies, nevertheless the global steel prices have already remained under pressure with revival in China demand still remaining awaited. China remains largest consumer of commodities and hence a fall in internal consumption of China means more exports.

    Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Musique: le metal, exploser les oreilles sans casser la voix

    Commodities

    Strengthening Vietnam-US business partnership in the agricultural sector: Towards sustainable development and trade balance

    Commodities

    La recherche s’attaque au calcul du bilan carbone de l’IA

    Commodities

    Quand le métal devient métaphore de l’élévation : le 71e congrès des Compagnons serruriers du Devoir a réuni plus de 500 personnes à Nîmes

    Commodities

    De Nantes à Clisson, les micros festivals de métal dans l’ombre du Hellfest

    Commodities

    Rome’s Agricultural Renaissance

    Commodities
    Leave A Reply Cancel Reply

    Top Picks
    Precious Metal

    Novak Djokovic eyes first Olympic gold at Paris 2024 after Wimbledon runner-up finish

    Cryptocurrency

    DRML Miner Launches New Opportunities For Cryptocurrency Newbies

    Cryptocurrency

    Stablecoins Could Bring ‘ChatGPT’ Moment for Blockchain Adoption, Hit $3.7T by 2030: Citi

    Editors Picks

    SEC Division’s New Stance on Memecoins Marks Major Change in Cryptocurrency Regulation

    February 28, 2025

    Utilities took a bigger bite out of consumer spending in January

    February 28, 2025

    In Switzerland, gold refineries are operating at full capacity

    April 28, 2025

    Rwanda launches $9.9M genetically modified crops program to boost agriculture

    October 17, 2024
    What's Hot

    BMW présente les points forts de ses prochaines voitures électriques

    February 27, 2025

    Santacruz Silver nomme Eduardo Torrecillas au poste de directeur de l’exploitation -Le 03 mars 2025 à 15:51

    March 3, 2025

    Gold rises, silver plunged

    July 23, 2024
    Our Picks

    Gold Hits Record High; “Historic Times – But Few Notice”

    August 18, 2024

    Energy Action Committee recommends adoption of new residential and commercial construction regulations

    October 10, 2024

    Courtney: Supercars retirement announcement “accidental”

    August 22, 2024
    Weekly Top

    Ambiance rock garantie au Puy-Sainte-Réparade avec le groupe pop rock Silver Fox au château La Coste

    June 1, 2025

    Quand le métal devient métaphore de l’élévation : le 71e congrès des Compagnons serruriers du Devoir a réuni plus de 500 personnes à Nîmes

    June 1, 2025

    Dividend & Stock Split: TCS, Tata Motors, Coforge Among Shares To Trade Ex-Date This Week

    May 31, 2025
    Editor's Pick

    ‘Now she’s cheering for team India with me’

    February 19, 2025

    NTT DATA Launches Agentic AI Services for Hyperscaler AI Technologies

    March 23, 2025

    Nobuo Uematsu Announces Retirement From Video Game Music

    October 15, 2024
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.