There has been some profit-taking right now, it’s off its highs and the strength in the US dollar also continued to weigh, but much of the trigger came in from China this week where there are worries of tightening credit and commodity price cap that China has been talking about.
Metal stocks have had a crazy run in 2021, they are up between 60-75 percent odd. So, what is causing this fall? Let’s break in parts – 1) you sell on good news, the company comes out with a solid set of numbers, the outlook is fairly positive, but there is some profit booking. 2) Ferrous stocks, unconfirmed reports are suggesting that maybe there is currently an import duty when you are importing steel to the tune of around 7.5 percent. It was reduced to 10.5 to around 12.5 percent in budget 2021. It didn’t have a big impact whatsoever because prices shot up.
Watch the accompanying video of CNBC-TV18’s Manisha Gupta and Nigel Dsouza for more details