The Bombay Stock Exchange’s (BSE) metal index closed at a 52-week low on Friday mainly due to the decline in metal prices globally during the week. The index declined by 7.7 per cent as compared with the 3.3 per cent fall in BSE’s benchmark index, the Sensex. Since September 5, 2008, the metal index has shed 904.35 points to close on 10,881.42 on Friday.
On the London Metal Exchange (LME), metal prices declined in the range of four per cent to eight per cent during the week. The copper wire bar, lead, zinc and nickel prices fell more than five per cent each. In the domestic market, steel stocks fell after the steel ministry recommended a 5 per cent duty on iron ore exports in addition to the present 15 per cent to control the domestic prices of steel.
Frontline metal and steel stocks, such as Tata Steel, Sterlite Industries, Jindal Steel and Power, JSW Steel, Hindustan Zinc and Ispat Industries, declined over five per cent each and of SAIL and Hindalco between two per cent and four per cent on BSE.
Sterlite Industries was the largest loser, tumbling by 17.1 per cent to Rs 487.10 (from Rs 587.79), followed by Jindal Steel and Power by 11.8 per cent to Rs 1,586.15 (Rs 1,798.10). The market price of JSW Steel dropped by 7.3 per cent from Rs 710.40 to Rs 658.85 after the company reduced domestic steel prices by Rs 2,000 per tonne.
