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Metal stocks nosedived in the domestic stock market as metal prices fell in global markets in response to North Korea tensions and S&P's downgrade of China's credit rating.
NMDC, Vedanta, and Hindalco plunged up to 3 per cent. Steep fall in the share prices of JSW Steel (down 6.38 per cent), Nalco (-2.83 per cent), Jindal Steel (-4.08 per cent), and Tata Steel (-3.26 per cent) dragged Nifty Metal index over 3 per cent lower to 3,366-level.
The Nifty Metal index was trading down at 3,400.70, down 2.61 per cent at 1 pm local time.
However, London zinc and nickel rose on Monday, rebounding from declines in the previous session, but the price gains were limited as investors remained cautious on the outlook for the economy in China, the world's top metal consumer, and for the US dollar.
S&P has lowered China's sovereign credit rating one notch to A+ from AA-, putting it in line with those of Moody's and Fitch, citing economic and financial risks.
Pyongyang's Foreign Minister had said last week that North Korea could consider testing a hydrogen bomb over the Pacific Ocean in retaliation to Donald Trump's threats to destroy the country.
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