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

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NSE Metal Index is down for the consecutive fifth straight session and is down by 0.5%. Moody's downgraded debt rating of China on Tuesday, the world's biggest consumer of metals, saying the outlook for its financial strength will worsen.
 
Stocks such as Vedanta is down by 1.5%, Welspun Corp is down by 0.9%, Hindalco is down by 0.7% and MOIL is down by 1%.
 
Tata Motors on Wednesday surged the most since Nov 8,2016 on above estimates Q4 FY17 earnings. The stock climbed nearly 4% on the NSE.
 
At 11 AM, the S&P BSE Sensex is trading at 30525 up 160 points, while NSE Nifty is trading at 9429 up 43 points. A total of 6 stocks registered a fresh 52-week high in trade today, while 51 stocks touched a new 52-week low on the NSE.
 
There are 884 advances, 658 declines and 408 unchanged stocks on NSE reflecting a negative bias floating in the market.
 
The BSE Mid cap Index is trading up 0.1% at 14261, while BSE Small cap Index is trading up 0.4% at 14841.
 
Some buying activity is seen in Realty, Metal, Auto and Bankex while Consumer Durables, Metal and Oil & Gas is showing weakness on BSE.
 
Tata Motors DVR, Tata Motors, Yes Bank, Adani Ports and TCS are among the gainers, whereas Bank of Baroda, Asian Paints, HCL Tech, Indiabulls Housing Finance and Dr Reddy’s on the NSE.