Indian Stock Market Crashes for Third Straight Session

The Indian stock market continued its downward trend for the third consecutive session on Friday, March 13, with the Sensex and Nifty 50 benchmarks falling by 1% each. The selling pressure was evident across most sectors, with the FMCG sector being the only notable exception.

Metal Stocks Witness Sharp Selling

Despite a dip in international metal prices, metal stocks witnessed sharp selling pressure. Key metal majors, including Hindustan Zinc, Tata Steel, NALCO, Hindalco Industries, and SAIL, saw their share prices decline by 4% to 6%. The sharp decline in metal stocks can be attributed to the expected shortage of gas supply due to the ongoing US-Iran war and subsequent drop in industrial demand for metals.

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Market Expectations

According to market experts, the market is expecting a shortage of gas supply, which is essential for metal processing. As a result, companies have lowered their demand, leading to a decrease in the purchase of fresh raw materials. This trend is expected to continue until a clear picture of the US-Iran ceasefire emerges. The weak demand is likely to reflect in the company's balance sheet, resulting in weak Q4 earnings for metal processing companies.

Metal Prices

According to Reuters, metal prices saw a mixed trend on Friday. Aluminium eased 0.26% to 25,250 yuan ($3,667.13) a metric ton, while copper, zinc, lead, tin, and nickel saw declines ranging from 0.31% to 1.29%.

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Market Outlook

The Indian stock market is expected to extend its losses for the third consecutive week. The Sensex has shed about 3,800 points, or nearly 5%, while the Nifty 50 has lost more than 1,100 points, or nearly 5%, this week.