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Bad day for metal stocks

May 25, 2010

MARKETS-SOUTHASIA-STOCKS/
The BSE Metal index dropped 5.1 percent on Tuesday, the lowest among the sectoral indices.

The BSE Sensex also dropped to its lowest in more than three months as renewed fears over Europe’s debt woes triggered worries foreign portfolio investors will step up their withdrawals.

Leading the fall in the BSE Metal index were Bhushan Steel, which dropped 4.7 percent, Hindustan Zinc, which dropped 4.9 percent, and JSW Steel, which was down 5.7 percent.

Tata Steel and Sterlite Industries, which were among the top Sensex losers, fell over 4 percent.

Shares of Steel Authority of India, the country’s largest domestic steel maker which will consider cutting prices of flat steel products by 1,500-2,000 rupees ($31.6-42.1) per tonne in June, ended 6.6 percent down at 186.70 rupees.

Do you think global jitters will drive metal stocks further down?

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