www.rupeedesk.in
Stocks of metal companies are seen rising next week as we believe that the sector has
taken a huge beating this week on dismal Chinese economic data indicating that the
world's largest consumer and producer of metals is on a downturn. CNX Metal Index fell
around 4.5% this week against a mere 0.3 fall in Nifty index on fears concerning China's
economy. Along with the negative data which showed that China's trade surplus turned to
a deficit in February, fears of a domino effect on Chinese corporate sector had followed a
Chinese solar company's default on a corporate bond. Accordingly, copper prices had
also plummeted on Chinese economic data, pulled further down on the fact that the metal
is famously used as collateral in financing deals in the country. A fall in copper prices
had led to financiers losing interest in copper as a financing tool and selling it, leading to
a further plunge.
Stocks of metal companies are seen rising next week as we believe that the sector has
taken a huge beating this week on dismal Chinese economic data indicating that the
world's largest consumer and producer of metals is on a downturn. CNX Metal Index fell
around 4.5% this week against a mere 0.3 fall in Nifty index on fears concerning China's
economy. Along with the negative data which showed that China's trade surplus turned to
a deficit in February, fears of a domino effect on Chinese corporate sector had followed a
Chinese solar company's default on a corporate bond. Accordingly, copper prices had
also plummeted on Chinese economic data, pulled further down on the fact that the metal
is famously used as collateral in financing deals in the country. A fall in copper prices
had led to financiers losing interest in copper as a financing tool and selling it, leading to
a further plunge.
