Indian shares have had a mixed year so far, but the BSE metals index, which is a barometer of metal companies’ performance in India, has been the worst performer among sectors, data shows.
The 13-share metals index is down more than 33 percent this year, widely underperforming the benchmark BSE Sensex that has lost nearly 3 percent.
“Recovery is quite uncertain. China has slowed down. Once the demand slows down the pick-up in demand will take a lot of time,” said Sanjay Jain, senior vice-president at Motilal Oswal Securities.
Signs of slowing growth in China, which is the world’s top consumer of metals such as copper and steel, have dampened prospects, while weakness across Europe continues to weigh on the sector.