InvestorQ : Do you believe that the long trade in metals is coming to an end and what does that mean for stocks like Tata Steel, Hindalco and JSW Steel?
Niti Shenoi made post

Do you believe that the long trade in metals is coming to an end and what does that mean for stocks like Tata Steel, Hindalco and JSW Steel?

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ishika Banerjee answered.
2 months ago
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Even as the Adani group stocks were unravelling in the previous week, another big story that unravelled was the story of metal stocks with most metal stocks taking it on the chin. Many have called an end of the frenetic global commodity rally, but that may be a trad premature at this point of time to say with confidence. The metals index fell 7% during the week, the worst since the 10% correction in second week of May 2020.

To an extent, the strengthening US dollar and China’s efforts to cool off inflation were among the factors behind this week’s meltdown in commodity and stock prices. In addition, China also hinted at selling metal reserves to check the commodity price spike and that has not helped sentiments. While it may be too early to call the end of the rally, it is likely to be more calibrated from here on.

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