Metal stocks melt as Sensex falls 111 pointshttps://indianexpress.com/article/news-archive/web/metal-stocks-melt-as-sensex-falls-111-points/

Metal stocks melt as Sensex falls 111 points

The BSE Sensex fell for the fourth session in a row and closed 0.7 per cent lower as renewed concerns over Europe’s debt woes and fears of recession in the US continued to weigh on investor sentiment.

The BSE Sensex fell for the fourth session in a row on Monday and closed 0.7 per cent lower as renewed concerns over Europe’s debt woes and fears of recession in the US continued to weigh on investor sentiment.

Even as investors reacted cautiously to the latest efforts by European policymakers to stop the fallout from the region’s debt crisis,a selloff in the commodity markets hit shares in Indian metals and mining companies.

With foreign investors pulling out money,the Sensex closed 110.96 points lower in a volatile session to 16,051.10 after opening up 0.2 per cent.

Meanwhile,FIIs pulled out another Rs 1,083 crore on Monday,taking the total outflows to Rs 3,750 crore in the last three days. Metal and mining shares were among the worst hit after copper futures in Shanghai and London crashed as fears of a Greek default caused panic about a possible sharp slowdown in global demand for industrial metals.

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Shares of Hindalco and Sterlite Industries dropped close to near 2-year lows and ended down 3.9 per cent and 4.3 per cent,respectively. Hindustan Copper fell 3.7 per cent. State-run Coal India,the world’s largest coal miner lost 5.2 per cent.

The fall in other Asian markets was steeper than India. Japanese benchmark Nikkei 225 tumbled 2.17 per cent to 8,374.13 points,while Indonesia’s key Jakarta Composite Index crashed 3.22 per cent to 3,316.14 points. South Korea’s Kospi fell 2.64 per cent to 1,652.71 points while Hong Kong’s key Hang Seng,Chinese benchmark Shanghai SE Composite and Australia’s S&P/ASX 200 dropped over 1 per cent.