NMDC loses its sheen

NMDC is the top loser on the BSE, currently down 3.3% at Rs.127.20, which is around its intra day low.

This stock, along with other metal stocks like Hind Zinc, Sesa Sterlite, Tata Steel, SAIl; all are down. The reason – China. Ever since PMI data came in for Feb’14 came in, there is major worry all over of a slowdown in China. The flash Markit/HSBC Purchasing Managers' Index (PMI) fell to a seven-month low of 48.3 in February from January's final reading of 49.5. When reading dips below 50, it is usually an indication that demand has contracted and this has dipped below 50 for two consecutive months. A demand contraction from China, particularly the iron ore, copper, nickel and other such industries, does not bode well for the metal sector as it biggest market remains China.