Bears halt Metal stocks winning streak; Hindalco, JSW Steel, Tata Steel in huge selloff

Hindustan Zinc surged 5% and MOIl over 1% as other stocks in the sector were under extreme selling pressure.

January 05, 2021 2:20 IST India Infoline News Service

The bears caught firm hold of metal stocks during Tuesday's trading session. The Index had been leading the rally for Indices until today when the sector failed to join other sectors in market rally. The Nifty Metal Index gained as much as 3.1% on Monday to trade at its highest since November 2018.

At around 2.20 pm Nifty Metal was trading at 3,364.85 down 59.75 points or 1.74% , touching a low of 3,351.10 in an intraday trade on Tuesday.

Heavyweights Hindalco, JSW Steel, Tata Steel were the major laggards on Tuesday. Hindalco stock scaled an all-time high Rs256 on Monday after trading in a narrow range over the past month. However, the stock led the losses on Tuesday and was trading at Rs6.35 down or 2.50% at Rs247.95.

JSW Steel trade at Rs677.90 down Rs15.10 or 2.18% while Tata Steel also struggled at Rs394.40 down Rs8.70 or 2.16%. 

Shares of domestic steelmakers and other metal companies have rallied due to price hikes, however, investors seemed cautious after reports that some companies may increase prices up to 2,400 a tonne and indicating more hikes in the coming weeks.

Ratnamani, Coal India, Nalco, SAIL, Jindal Steel, APL Apollo, Welspun Corp and NMDC were lower in the range of 1.59% to 1.14%. Midhani and Hindustan Copper were also marginally lower.

Hindustan Zinc (up 5%) led the gains while MOIL was also 1.31% higher. 

MOIL has announced that the company established a sizeable resources base of 7.65 million tonnes of manganese ore in Pani area, as part of the memorandum of understanding (MoU) with Gujarat Mineral Development Corporation Ltd. (GMDC).

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