Explained: Why Tata Steel plunged 10% today – Times of India

NEW DELHI: The metal index dived nearly 7 per cent to its lowest level in over a month on Monday.
Tata steel was the biggest loser in the sensex pack falling up to 10 per cent after future prices for steel making raw materials dropped as China, the world’s top steelmaker, indicated it could expand strict air pollution controls to more cities.
Shares of Tata Steel plunged 132 points or 9.53 per cent to close at Rs 1,253.35 on the BSE. While, it finished 139 points or 10 per cent lower at Rs 1,247.35 on the NSE.

Apart from Tata Steel, JSW Steel also lost 7.7 per cent and Hindalco plunged 6.1 per cent during the day.
The metal index plunged as iron ore futures in China hit a nine-month low last week after steel output in the world’s biggest steel producer continued to slide, compounding concerns around demand for the raw material.
China’s monthly crude steel production slipped for the third straight month to 83.24 million tonnes in August, data from the National Bureau of Statistics showed, sending average daily output to the lowest since March 2020.
Besides, worries over the fate of Chinese real estate major Evergrande and its impact on the world’s second largest economy pulled down global commodity prices.

Shares of Evergrande plummeted 10.2 per cent after earlier losing as much as 19 per cent to more than 11-year lows.
The company’s listed units also fell, as investors worried about the real estate developer’s ability to repay a small portion of its $305 billion debt due on September 23.
Evergrande’s troubles added to growing unease about the health of China’s economy after Beijing’s recent crackdown on tech firms. The Hang Seng index shed 3.3 per cent.
Taking cues from the global markets, the Nifty Realty index too plunged 2.14 per cent during the day.