In an otherwise strong market, Nifty metal has softened heavily, slumping over 6.5% even in otherwise strong market. This is on sector-specific news, following the centre's levy of export duties on iron ore and some steel intermediaries.
To increase domestic availability, the centre on May 21 hiked duty on iron ore by up to 50 percent and some steel intermediaries to 15 percent.
From the pack constituted by 15 stocks, 4 stocks have plunged to 52-week low namely, SAIL, JSW Steel, Tata Steel and NMDC. The other stocks nearing 52-week low from the pack is Hindustan Zinc, which at day's low has touched a price of Rs. 286.2 per share, while its 52-week low has been Rs. 278.95 per share.
On the other hand, Ratnamani Metals has hit a fresh 52-week high in trade, while Welspun Corp is nearing its 52-week high price. The stock in a week's time has gained by over 30%.
"We see this as an extremely negative development for the steel sector and expect broad-based multiple de-rating. We downgrade steel/stainless equities under our coverage to either hold/reduce/sell", ICICI Securities said in a note to investors.