The BSE Metal Index is down almost 2% with 9 out of the 10 stocks being traded in the red. Except for NMDC, all the nine stocks are down with JSW Steel and Vedanta figuring among the top five losers.
The foreign brokerage house, CLSA has put out a report stating that this sector could see pressure due to deteriorating Chinese demand outlook, which is going to weigh on commodity prices.
It has downgraded Tata Steel and JSW Steel to sell. It cut the target price of Tata Steel from Rs.855 to Rs.460 and that of JSW Steel from Rs.375 to Rs.260.
This pessimism of CLSA has percolated down to the entire sector, pushing it all into the red.