Metal stocks slumped on Monday as the debt crisis at Evergrande, one of China's biggest real estate developers, led to a global plunge in industrial metals and ore prices.
The BSE Metal index, which tracks the prices of India's top 10 metals and mining companies, fell 6.8% on Monday, showing its worst performance in months. Sensex fell 0.9% on the day.
Sales in the metals space were led by steelmakers and iron ore producers, while non-ferrous metals producers escaped with minor losses. Tata Steel was the biggest loser on Monday, down 9.5%. It was followed by Jindal Steel & Power (9.1%); NMDC (7.7%); and JSW Steel (7 percent).
The sell-off in metal shares on Monday resulted in a loss of Rs 57,000-crore in investors' pockets. 10 shares in the BSE Metal index finished the day with a combined market capitalization of Rs 8.85 trillion, up from Rs 9.42 trillion on Friday.
This is a sharp comeback for metal stocks, one of the biggest gains in the post-pandemic rally. The BSE Metal index is up nearly 234% since March 2020 against a 98.5% increase in Sensex over the period.
But including Monday's drop, the BSE Metal index has dropped 9.2% since the end of July this year.
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