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Here's why metal stocks SAIL, NMDC, and NALCO have dropped by much to 5%.


Here's why metal stocks SAIL, NMDC, and NALCO have dropped by much to 5%.

The Nifty Metal index had only lost twice in the previous two weeks before Friday's dip ended a six-day gaining streak.


With the exception of Adani Enterprises, all sectoral constituents of the Nifty Metal index are trading lower on Friday, with a 2% loss.

With losses of 5%, SAIL is the biggest sectoral loser on the Metal index. NMDC is next, with losses of 4.6%.

JSW Steel, Tata Steel, and Hindalco, among other Nifty 50 companies, are trading with losses ranging from 2% to 3%.

NALCO's stock is down 2% on Friday after dropping 7% on Thursday and being placed under the F&O ban. No new positions can be formed on a stock that is subject to a F&O prohibition.This article explains the factors that contributed to Thursday's stock decline.

Reports that China intends to further devalue the Yuan relative to the US dollar next year have caused metal prices around the world to cool. The street is also in a cautious mindset ahead of Thursday's hotter-than-expected macro data and the US Fed meeting next week.

The only metal to increase on the LME was nickel, which maintained its gains after Chinese authorities indicated more stimulus measures at a crucial meeting on economic strategy.

At the conclusion of the two-day Central Economic Work Conference, some more radical measures were expected to be presented, but thus far, that has not happened.On Thursday, the Politburo reaffirmed the majority of the steps it had announced earlier this week.

The Nifty Metal index had only lost twice in the previous two weeks before Friday's dip ended a six-day gaining streak.
 

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