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Metal stocks such as Hindustan Zinc, Sterlite, Hindalco and Nalco have been under pressure at the bourses of late. These stocks have dropped between 4.2 per cent and six per cent over a week's time.

According to brokers tracking this sector, these counters have been at the receiving end as futures prices have tumbled in the London Metal Exchange (LME).

According to them, international hedge funds are resorting to heavy selling in commodity markets, and the selling is likely to continue for some more time. Copper, zinc and aluminium futures fell more than four per cent on LME.

According to analysts, both copper and aluminium prices have dipped below the 100-day moving average; copper, which is hovering around $7,380-7,890 a tonne, could go down to touch $7,200, they fear.

Another main worry for the sector, according to market participants, is the reported move of China to cool its economy. Hindustan Zinc on Wednesday closed at Rs 598.45 against Tuesday's price of Rs 612.45; Hindalco at Rs 171 (Rs 172.10); Sterlite at Rs 447.15 (Rs 446.65) and Nalco at Rs 200.9 (Rs 199.30).

K.S. Badri Narayanan

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