The Metal Index is intended to represent the actions and output of India's metals industry, which includes mining. The Nifty Metal index has now fallen for two weeks in a row, losing 8% since May 10.
Credit Suisse downgraded Tata Steel to neutral from outperform in a study on the steel market, with a target price of Rs 1,250 per share. It also downgraded JSPL from outperform to neutral with a target of Rs 450 per share, and JSW Steel from neutral to underperform with a target of Rs 550 per share.
The nifty metal index was seen trading lower at Rs 5,038 down 1.20% or 61.05 points on NSE at 12.10 pm IST.
Jindal Steel was down 2.89% at Rs 395
Sail was down 2.34% at Rs 121.05
Tata Steel down by 2.15% at Rs 1,081
JSW Steel down by 2.13% at Rs 685.
Iron ore prices have risen in recent months, continuing the boom that began in 2020, with prices now more than double what they were a year ago.
Tata Steel, JSW Steel, JSPL, Hindalco, and SAIL have all seen significant gains in recent months as metal prices have risen in tandem with the broader commodity bull run.
JSW, according to Credit Suisse, is trading at the most volatile valuations of the four steel companies, with the prospect of higher domestic iron ore prices hurting spreads as well.
The index has dropped after a huge 79 percent gain since the end of January this year.