Shares of eight metal companies fell by 1.11% to 5.47% at 14:23 IST on BSE amid fears the global economy is faltering.
Jindal Steel & Power (down 5.47%), NMDC (down 4.64%), Hindalco Industries (down 4.6%), JSW Steel (down 4.43%), Tata Steel (down 3.18%), Sesa Sterlite (down 2.98%), Hindustan Zinc (down 1.86%) and Bhushan Steel (down 1.11%), edged lower. However, Steel Authority of India (Sail) rose 1.36%.
The S&P BSE Metal index was down 3.08% at 11,049.01. It underperformed the Sensex, which was down 0.95% at 26,383.61.
The renewed volatility in metal shares is being blamed on concerns that global growth, especially in Asia and Europe, is faltering. Weaker growth could reduce demand for industrial metals.
Weak data from Germany, and predictions earlier in the week from the IMF that global growth would be weaker than expected, have undermined investors' confidence.
Germany reported on Thursday, 9 October 2014, that its exports fell 5.8% in August, the worst decline since January 2009.
The IMF on 7 October 2014, cut its outlook for global growth in 2015 and warned about the risks of rising geopolitical tensions and a financial-market correction as stocks reach frothy levels.
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