Home ›› 05 Jul 2022 ›› Stock
Indian shares fell on Monday as metal stocks witnessed a sell-off on demand worries in top consumer China, and as the technology sector slid on weak sentiment in global markets.
As of 0515 GMT, the NSE Nifty 50 index was down 0.35 per cent at 15,697, while the S&P BSE Sensex fell 0.3 per cent to 52,782.29. The indexes rose about 0.3 per cent each last week.
The Nifty metals index (.NIFTYMET) fell 2.5 per cent as iron ore and steel prices tumbled on Chinese demand worries. China is also the top producer of metals.
The Nifty IT index (.NIFTYIT), meanwhile, dropped 1.1 per cent.
"There is a shift from growth to value stocks globally. Hence, we are seeing a sell-off in IT stocks ... The fear of degrowth in the US and demand worries, (and) resurfacing of COVID-19 infections in China is dragging metals," said Saurabh Jain, assistant vice president, research at SMC Global Securities.
Mills in top steel producer China have idled dozens of blast furnaces as stocks piled up after domestic demand weakened, hit by Covid-19 lockdowns and bad weather.
The Indian government's move to introduce export duties for gasoil, gasoline and jet fuel to help maintain domestic supplies, and impose a windfall tax on oil producers on Friday also had an overhang on markets.
