By Aditya Raghunath
Investing.com – The index closed 6.43% today. Why is that happend? It was a series of messages that brought him down. First came the news that the US Federal Reserve would start tapering its bond purchases, reducing the liquidity in the system.
This drove investors to safer investments. Commodities all over the world fell, but metal fell harder because it rose so much. The US dollar is rising and that will put pressure on other asset classes, including commodities. Even oil has fallen below $ 64.
The second reason is the production cutbacks in China. Two days ago, mining giant BHP issued a note on economics and commodities warning: “The increasing likelihood of drastic cuts in steel production in China in the current half-year … tests the optimistic determination of the futures markets.”
“Prices fell significantly in late July and early August, but remain extremely high compared to the past at around $ 160 / t at the time of writing,” said BHP.
NMDC Ltd (NS 🙂 lost 9.94%, Vedanta Ltd (NS 🙂 lost 9.89%, Tata Steel Ltd (NS 🙂 lost 8.85%, Steel Agency of India Ltd. (NS 🙂 closed 8.68% lower and Jindal steel & power Ltd (NS 🙂 lost 8.06%. JSW steel Ltd (NS 🙂 lost almost 8% during Hindalco Industries Ltd. (NS 🙂 closed almost 6% lower today.