The top losers of the day were National Aluminium Company (3%), Jindal Stainless (2.6%), and Tata Steel (2.6%). Both National Aluminium and Jindal Stainless reached their 52-week highs on Monday. Meanwhile, Jindal Steel & Power, Hindustan Copper, NMDC, Steel Authority of India (SAIL), Ratnamani Metals & Tubes, JSW Steel, Hindalco Industries, Vedanta, and APL Apollo Tubes shares fell between 2% and 0.53% around this time.
The downturn in the metals market was triggered by a drop in nonferrous metals prices on the London Metal Exchange (LME). Kranthi Bathini, Director-Equity Strategy at WealthMills Securities, attributed this decline to the rating agency Fitch downgrading the US’ credit rating from AAA to AA+. “Fitch stated that it expects fiscal deterioration over the next three years, which is likely to impact global growth prospects and, consequently, metal demand,” Bathini said.
The US dollar strengthened after a survey from the Federal Reserve revealed that US banks reported tighter credit standards and weaker loan demand during the second quarter. This indicates that rising interest rates are impacting the economy, according to Reuters. On the other hand, news from China did not inspire confidence among investors, as the country released further policy guidelines without providing any concrete measures to boost its economy, as stated in a Reuters report. Beijing and Shenzhen announced over the weekend that they would implement measures to better meet homebuyers’ needs, without offering details.
Sentiments in the broader markets remained weak, with frontline indices experiencing sharp declines. The Nifty50 decreased by 186.15 points or 0.94% to 19,547.40. The S&P BSE Sensex plunged over 600 points or 0.94% to 65,833.20. Nifty Bank traded at 45,071.65, a decrease of 520.85 points or 1.14%.
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