New Delhi: After domestic producers agreed to reduce prices and in line with the weak global trend, steel stocks on Monday plunged by as much as 8 per cent on the bourses.
While the stocks of other companies in aluminium, zinc and iron ore sectors such as Hindalco, Sterlite, Hindustan Zinc and Sesa Goa declined moderately, shares of Tata Steel, SAIL and JSW Steel fell up to 8 per cent.
All major steel producers, including SAIL, Tata Steel, Essar and Ispat agreed to cut prices after the Government asked them to contain prices to keep inflation under check.
Shares of SAIL fell over 8 per cent or Rs 8.70 to close at Rs 97, Tata Steel lost Rs 23 or 5.17 per cent at Rs 420.25 and JSW Steel plunged 8.85 per cent or Rs 41.70 on the Bombay Stock Exchange today.
All 13 stocks in the BSE metal index closed deep in the red with losses ranging between 2-8 per cent. The BSE metal index lost over 380 points or 4.59 per cent to settle at 8,036.49 after falling to an intra-day low of 7,979.29.
Iron ore exporter Sesa Goa saw its share price fall Rs 23.35 to 1638.10 on the budget proposal to impose a duty on ore exports. Hindustan Zinc scrip lost Rs 25.05, or 4.15 per cent, at Rs 579, while Sterlite Industries ended down by Rs 24.05 at Rs 446.
Cement scrips were also mostly down in an overall weak market, following reports that manufacturers have refused to cut prices despite appeals by the Government.
Among top cement companies, only Gujarat Ambuja and Grasim were up, while most others such as ACC, Ultratech and Birla Corp ended in the red. Gujarat Ambuja was up 2 per cent, while Ultratech fell 8 per cent on the BSE.
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