Metal Stocks Slump as China's Stimulus Pledge Lacks Details; JSW Steel, Tata Steel, NMDC, SAIL Drop 3-5%

Metal stocks took a hit on Friday as investors expressed concern over China's latest economic stimulus pledge, which lacked specific details about its implementation. Major players in the sector, including JSW Steel, Tata Steel, NMDC, and SAIL, saw a significant drop in their stock prices, with losses ranging from 3% to 5%.

China, the world's largest consumer of metals, has been facing a slowdown in its economy, leading to heightened expectations for further stimulus measures. However, the absence of concrete plans and timelines in the announcement left the market uncertain, leading to a pullback in metal prices and, consequently, in the stock prices of domestic companies dependent on the sector.

JSW Steel saw its stock decline by 4.5%, while Tata Steel and NMDC experienced losses of around 3.8% and 4.1%, respectively. SAIL, another major steel manufacturer, also dropped by 3.2%. These declines reflect broader concerns about demand for steel and other metals, both domestically and internationally, as China’s growth prospects remain unclear.

Analysts warn that unless China provides more clarity on its stimulus measures, the outlook for metal stocks could remain subdued, especially given the current volatility in global markets. Investors are likely to remain cautious until further details are provided on how China plans to boost its economic recovery and its impact on metal consumption