The Nifty Metal index declined 2% on Monday as selling pressure was seen in Tata Steel, JSW Steel, Jindal Steel, SAIL, Vedanta, and Jindal Stainless (Hisar).
Shares of Tata Steel, Jindal Steel, SAIL, and JSW Steel, which declined 4% each, were leading the index’s fall. Shares of Vedanta also contributed to the fall, declining 3%. Shares of Jindal Stainless (Hisar) and Hindalco dropped 2% each, while those of APL Apollo, Welspun Corp, Hindustan Zinc, and Coal India, fell 1% each.
The index’s fall could also be attributed to the escalating trade war between the US and China. As per media reports, US Secretary of State Mike Pompeo told Fox News on Sunday that President Donald Trump would raise the issue of Hong Kong’s human rights with China’s President Xi Jinping at a potential meeting of the two leaders at the G20 summit in Japan later this month.
Moreover, tensions in the Middle East fueled investors’ concerns regarding global demand growth with the US blaming Iran for attacks on two oil tankers in the Gulf of Oman last week.
Meanwhile, equity benchmark indices were trading in the red on Monday with the Sensex declining 294 points at 39,158 levels. The Nifty dropped 98 points at 11,726 levels, well below its key level of 11,750.
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