Analysts turn cautious on metal stocks as coronavirus fears escalate

At the bourses, the Nifty Metal index has cracked 12 per cent year-to-date (YTD), as against a 3 per cent dip in the benchmark Nifty50 index till February 25

With fatalities due to Covid-19 (coronavirus) fanning across the globe, weak consumption and supply chain disruption stemming from China look imminent. Add to this the sharp decline in metal prices, the near-term outlook for the sector looks weak.

Most analysts now have turned cautious on the sector – at least till the time there is clarity on the damage caused due to the health scare. In this backdrop, most analysts have started revising downward their growth forecasts for China and the world economy.

The impact