China meltdown singes Indian metal stocks; Vedanta tanks 9%

While the Chinese stock market crash have triggered a massive sell-off in Indian equities since early trade, worries of a global meltdown in commodity prices amid slowing China’s economy singed the local metal stocks.

Already, the BSE metal index was the worst index performer on the bourses, under-performing benchmark Sensex and other sectoral peers, and shed nearly 4 percent to 8,833.78 as against 1.6 percent drop in the Sensex at 27,720.18.

While global steel demand have continued to remain sedate, lack of appetite in the domestic market has resulted in steel prices correcting approximately 20 percent this year.

Also, domestic iron ore prices are down 35-45 percent in last one year, while global iron ore prices facing lacklustre demand have slipped to $50 a tonne level, signalling harsher times in the near-term, said a market analyst.

Besides, other commodities such as copper, coal, natural gas, too, are sliding towards their 2015 lows.

In the current year so far, the BSE Metal index has already shed nearly 18 percent as against 8 percent rise in 2014.

Among the laggards in the metal pack at 12.45 pm, Vedanta Ltd tanked 9 percent to Rs 144.40, SAIL tumbled 6.2 percent to Rs 59.30, Hindalco shed 5.6 percent to Rs 101.25, Tata Steel eased 4.2 percent to Rs 284.80 and Jindal Steel was down 2.8 percent at Rs 79.90.

Others such as NMDC, Hindustan Zinc, JSW Steel, Coal India and Nalco were down over 1-2 percent each.

Earlier today, Chinese stocks witnessed massive sell-off and Shanghai Composite index fell nearly 5 percent while about 45 percent of listed mainland stocks were suspended, prompting investors to exit at will.