Metal stocks: Hindustan Copper’s stock dropped about 6% to trade at Rs 343.60 per share, making it the index’s biggest loss.
On October 10, metal businesses’ stock fell in trading, defying today’s general upward trend in the stock markets. The Nifty Metal index fell more than 1 percent as a result of the steep decline in share prices, making it the sole sectoral loser on the market today.
At 12:22 p.m., the Nifty Metal index had dropped to 10,237.
Today’s top metal losers:
The index’s biggest loss was Hindustan Copper’s stock, which dropped about 6% to trade at Rs 343.60 per share. Following this, shares of Hindustan Zinc fell by about 4% to trade at Rs 493.50 each. Shares of Tata Steel, Jindal Steel & Power, and NMDC all saw declines of around 2 percent, while shares of Steel Authority of India (SAIL) and National Aluminium Company (NALCO) plummeted by more than 2 percent apiece.
Shares of Vedanta, Hindalco Industries, and JSW Steel all had declines of around 1%, while Welspun Corp. saw slight losses. Shares of Jindal Stainless Steel, APL Apollo Tubes, and Adani Enterprises were trading higher, defying the trend.
A stronger currency
As the rupee declines and the dollar gains strength, metal equities decline. At 12.30 pm, the rupee was worth 88.70 versus the US dollar. Last week, it hit its lowest point ever, 88.80, which it is presently maintaining above.
The rising dollar increases the cost of most international commodities for purchasers using other currencies, including metals like copper, aluminum, zinc, gold, silver, and others.
Declining silver prices:
After a record gain, silver futures lost momentum and fell on October 10. As of 12.35 am, silver futures with a December expiration date on the Multi Commodity Exchange of India (MCX) increased by Rs 276 to Rs 1,46,600 per kilogram. After recently reaching a record high of Rs 1,53,388 per kilogram, the future contracts have now declined.
Future contracts that expire in March and May had declines of around 0.5 percent apiece, while those that expire in July saw declines of 1.5 percent. Futures for silver with a September expiration fell about 3%.
The stock price of Hindustan Zinc, India’s biggest producer of silver, fell as a result of the decline in silver prices.
Gaza truce agreement:
The ceasefire and hostage agreement that Israel and Hamas have agreed to as part of US President Donald Trump’s peace proposal for Gaza might be the first step toward putting an end to the Middle East conflict that has been going on for two years.
Investors may shift from safe-haven assets like commodities to a more risk-based strategy in response to a potential ceasefire in the region. This will probably have an effect on the metal businesses.
Booking profits:
On October 9, the metal index ended a three-session losing trend by gaining almost 2 percent to settle at 10,356.2. Investors may have engaged in some profit booking after such a dramatic increase.