Metal stocks under pressure after Moody’s downgraded China’s debt rating

The Nifty Metal Index is trading down at 2905 level down by 0.28% on Wednesday as of 1041 hours for a fifth straight trading session.
 
Moody's investor's service downgraded debt rating of China saying the outlook for its financial strength will worsen. The credit rating agency believes that the financial strength of China will erode in coming years as the debt of the country is on the rising trend.
 
The China’s debt has been growing at around 15% of the country’s output each year just to keep the economy growing between 6.5% to 7%.
 
China is the world's biggest consumer of metals. The downgrading of the China’s credit rating has worried the metal investors globally and domestically.
 
In the Indian equities market on Wednesday, the major metal stocks like Vedanta, Welcorp, Hindalco, MOIL are losing their sheen. Vedanta and Hindalco are the top contributors to the losses of BSE Metal index