Skip to main content

Metal stocks lose shine as China’s factory activity shrinks first time in 19 months

The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) for December, released on Wednesday, fell to 49.7 from 50.2 in November, marking the first contraction since May 2017.




Do something different, now what? You can find Best Stock Market Advisory in Indore for daily share market recommendations.


The Indian stock market has slipped further in the afternoon session on January 2 with the Nifty50 down close to 150 points and the Sensex down about 450 points.
Nifty Metal and auto index was the underperforming sectors, down close to 3 percent dragged by Hindalco Industries, JSPL, JSW Steel, Tata Steel, NALCO and Vedanta.
Nifty Metal was down almost 3 percent in this afternoon session dragged by JSW Steel, Tata Steel, and Vedanta which dipped over 3 percent. The other losers included NALCO, Jindal Steel & Power and Hindalco Industries that shed 1-2 percent.
The S&P BSE Metal index was down 2.4 percent with losses from Vedanta, JSW Steel, and Tata Steel being the top losers followed by Hindalco, JPSL, NALCO, SAIL, Hindustan Zinc, and Coal India.
China’s factory activity contracted for the first time in 19 months in December as domestic and export orders continued to weaken, a private survey showed, pointing to a rocky start for the world’s second-largest economy in 2019.
The gloomy readings largely dovetailed with an official survey on December 31 that showed growing strains on China’s manufacturing sector, a key source of jobs. The findings reinforce views that the economy is losing more steam.
The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) for December, released on January 2, fell to 49.7 from 50.2 in November, marking the first contraction since May 2017.
Economists polled by Reuters had forecast only a marginal dip from November to 50.1, just above the neutral 50-mark dividing expansion from contraction on a monthly basis. China’s official PMI showed factory activity contracted for the first time in over two years, also pressured by weak demand at home and abroad.
Research firm CLSA is of the view that deteriorating Chinese demand outlook is likely to weigh on commodity prices. The house has cut FY20-21 EPS estimates by 9-38 percent factoring in lower commodity prices and a stronger rupee.
It has downgraded Tata Steel to ‘Sell’ from ‘Buy’ and has cut the price target to Rs 460 from Rs 855 and has also downgraded JSW Steel to ‘Sell’ from ‘Underperform’ and has cut the price target to Rs 260 from Rs 375.
From Hindalco, the research firm has downgraded the stock to ‘Sell’ from ‘Underperform’ and has cut the price target to Rs 210 from Rs 255 while it has maintained ‘Buy’ on Vedanta and has cut the price target to Rs 250 from Rs 300.
For more trading tips find top 10 stock advisory company Indore

Comments

Popular posts from this blog

Oil prices fall on rising US rig count, Illinois refinery fire

US West Texas Intermediate (WTI) crude futures were at $51.92 per barrel at 0144 GMT, down 80 cents, or 1.5 percent, from their last settlement. Oil prices fell by more than 1 percent on Monday as US drilling activity picked up and as a refinery fire in the US state of Illinois resulted in the shutdown of a large crude distillation unit. US West Texas Intermediate (WTI) crude futures were at $51.92 per barrel at 0144 GMT, down 80 cents, or 1.5 percent, from their last settlement. International Brent crude oil futures were down 71 cents, or 1.1 percent, at $61.39 a barrel. In the United States, energy firms last week increased the number of oil rigs operating for the second time in three weeks, a weekly report by Baker Hughes said on Friday. Companies added 7 oil rigs in the week to Feb. 8, bringing the total count to 854, pointing to a further rise in US crude production, which already stands at a record 11.9 million bpd. WTI prices were also weighed down by the ...

Wall Street drops, S&P 500 confirms correction

The Dow Jones Industrial Average fell 178.74 points, or 0.73 percent, to 24,285.95, the S&P 500 lost 17.37 points, or 0.66 percent, to 2,632.56 and the Nasdaq Composite dropped 33.27 points, or 0.48 percent, to 6,938.98. US stocks closed lower in a shortened post-holiday trading session on Friday as the energy sector tumbled on continued weakness in oil prices, and the benchmark S&P 500 confirmed its second correction of 2018. The three major US indexes all fell well over 3 percent for the week, with the Dow industrial and the Nasdaq posting their biggest weekly percentage declines since March. The S&P 500 ended about 10.2 percent down from its September 20 closing record high, confirming it had entered a correction. The S&P last entered a correction earlier this year after posting a then record high in late January, and falling more than 10 percent by early February. That correction lasted roughly seven months, until the index posted a fr...

मेंथा ऑयल रेट टुडे: हफ्तेभर में 4% लुढ़का मेंथा, ₹1300 के नीचे जा सकता है भाव

मेंथा ऑयल का भाव एक हफ्ते में 4 फीसदी गिर चुका है. आगे भी कीमतों में तेज गिरावट के संकेत हैं. इसकी वजह नई फसल की आवक है. इस साल मेंथा का बंपर उत्पादन होने की उम्मीद है. कारोबारियों को जून में कीमतों में बड़ी गिरावट की आशंका है. मेंथा का सबसे ज्यादा उत्पादन उत्तर प्रदेश में होता है. ओरल केयर, फार्मास्युटिकल, परफ्यूम और कन्फेक्शनरी बनाने वाली कंपनियां मेंथा का इस्तेमाल करती हैं. मेंथा तेल की कीमतें पिछले महीने 1,360 रुपये प्रति किलोग्राम तक लुढ़क गईं. गुरुवार को एमसीएक्स पर मेंथा ऑयल का मई वायदा 0.20 फीसदी की गिरावट के साथ 1370 के आसपास कारोबार कर रहा था. वहीं दूसरे नजदीकी कॉन्ट्रैक्ट जून डिलीवरी का भाव 1,255 रुपये प्रति किलोग्राम पर कारोबार कर रहा था. एंजल ब्रोकिंग के डिप्टी वाइस प्रेसीडेंट (कमोडिटीज एवं करेंसी) अनुज गुप्ता ने कहा, 'हमें उम्मीद है कि आगे मेंथा ऑयल में गिरावट बढ़ सकती है. मई कॉन्ट्रैक्ट का भाव नीचे में 1,300-1,280 रुपये प्रति किलोग्राम तक गिर सकते हैं. कंपनियां मेंथॉल और क्रिस्टल बनाने के लिए भी मेंथा ऑयल का इस्तेमाल करती हैं. मेंथा को पुदीना भी क...