Metals have recovered more than 20 per cent in the last three months. Now these stocks are available at reasonable prices. In such a situation, there is a possibility of increasing them again.
Image Credit source: waldunsteel
The luster of metal stocks recently faded to such a degree that everyone was astonished. The BSE Metal Index has fallen by more than 20% in the last three months, while during this period BSE Sensex Only two percent is broken. Although this sector is showing in the green mark in July, but how strong is this recovery and how long will it last.. There is a question about it. First understand why metal stocks lost in the last three months. There are many reasons for selling in metal stocks. First of all, about inflation. In many countries, the inflation rate is at the height of decades. In fact, in the last two years after Corona, most countries have increased the flow of cash in the economy. After this, the start of the Russia-Ukraine war led to supply bottlenecks and the situation of inflation worsened.
Apart from this, global demand has been affected due to several reasons like slowdown in the global economy, low or uncertain metal demand from China, recessionary situation due to several times raising interest rates by the US central bank. Simply put, due to all this, the prices of metals have come down and due to this the shares of metal companies have collapsed.
what happened in india
Now let’s talk about the changes in the country. In order to increase domestic supply, on 21 May 2022, the Government of India imposed an export duty of 15% on steel products. Due to this, the prices of steel products have fallen by 12 percent in June 2022. Download Money9’s application by clicking on this link to see the full story. This app can be downloaded through this link- https://onelink.to/gjbxhu
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