Metal stocks face selling pressure; Vedanta down over 6%

Mumbai: Metal stocks on Tuesday witnessed sharp sell-off, falling as much as 6.3 percent, amid renewed concerns over slowing growth in China, the biggest consumer of commodities.

Shares of Vedanta declined by 6.29 percent, Hindalco plunged 6.22 percent and Coal India dipped 5.40 percent on BSE.

Among others, Jindal Steel & Power slipped 5.22 percent, Tata Steel (3.02 percent), Steel Authority of India (2.12 percent) and JSW Steel (1.70 percent).

BSE metal index lost 4.24 percent to settle at 6,976.62.

"Sentiments were under pressure after Asian Development Bank (ADB) stated that weaker growth in China this year is expected to cause a slowdown in the rest of Asia," said Jayant Manglik President Retail Distribution at Religare Securities.

As regards China, the ADB report said that despite robust consumption demand, economic activity fell short of expectations in the first eight months of the year as investment and exports underperformed.

"Growth is forecast to slow from 7.3 percent in 2014 to 6.8 percent in 2015. As external demand strengthens with the pick-up in growth in industrial countries and as improved financial conditions support investment, downward pressure on growth will ease," it said, adding that China is projected to grow by 6.7 percent in 2016.

Meanwhile, in the stock market the BSE Sensex dipped 541.14 points to 25,651.84.