Evergrande a clear & present danger for metals, chemicals

Evergrande, metals, chemicals, markets, stocks, JSW Steel, trading

Mumbai: The threat of a default by Evergrande, China’s second-largest real estate company, on debt of more than $300 billion has been roiling the Chinese and Hong Kong markets. It’s having an impact on Indian stocks too.

The selling of metal, steel, iron ore and chemical stocks that started in the middle of last week intensified on Monday. Tata Steel, Jindal Steel, SAIL, NMDC, and

JSW Steel

have dropped 10-15% in the last five trading sessions. Among chemical stocks, Tata Chemicals, DCW, Laxmi Organics declined 5% on Monday.

Though Beijing is expected to bail out Evergrande and contain the contagion risk, the global economy will be affected if the Chinese government fails to support the realty company, analysts said.

Stock Score, Analysts’ Ratings & Recommendations
Stock score of JSW Steel Ltd moved up by 4 in an year on a 10-point scale.

View Latest Stock Report

Stock Analysis

Stock score of JSW Steel Ltd is 10 on a scale of 10. View Stock Analysis »

Indian metals, steel, iron ore, textiles, garments, chemicals and tyres among other sectors are likely to be hit if the Chinese government isn’t too keen on a timely bailout, according to analysts. They advise investors to reduce exposure to mid- and small-cap stocks and switch to large-caps, information technology and pharmaceutical stocks.

“A slowdown in Chinese real estate led by an Evergrande default could drag down growth in the global economy and adversely impact prices of industrial commodities like metals, steel, iron ore among others,” said Gaurav Dua, head, capital market strategy, Sharekhan. “The Chinese government could depreciate the yuan to support its economy by pushing exports, which would mean an increase in competitive intensity in Indian sectors like textiles, garments, chemicals, tyres, among others.”

The real estate sector accounts for close to 29% of the Chinese economy. Evergrande had $110 billion in sales last year. The Hong Kong index has dropped 8% in the previous five trading sessions, while benchmarks in China, France, Germany and the UK have declined 3-4%. Shares of Chinese realtor Sinic Holdings crashed 87% in Hong Kong on Monday.

The Chinese authorities have once rejected the bailout plea of the company. Still, since the global financial crisis, governments and central banks have realised the importance of not letting a default situation get out of hand, said market participants.

“It is important to watch out for the Chinese government’s move. If it doesn’t bail out Evergrande, then it will have ripple effects on the global economy, including India,” said Mahesh Patil, CIO, Aditya Birla Sun Life AMC.

Internet Explorer Channel Network
News Related


Can quash SC/ST Act cases if ‘civil' offence: Top Court

© Provided by The Indian Express THE SUPREME Court Monday ruled that its inherent powers under Article 142 of the Constitution or that of the High Court under Section 482 ... Read more »

N Chandrababu Naidu meets President, demands central rule in Andhra Pradesh

© Provided by The Indian Express DAYS AFTER several offices of the TDP across Andhra Pradesh were attacked allegedly by ruling YSRCP workers and supporters, TDP supremo N Chandrababu Naidu ... Read more »

Man uses cobra as ‘murder weapon' to stage own death for $5 million life insurance

© Provided by The Indian Express Using a cobra as a “murder weapon”, a 54-year-old man in Maharashtra’s Ahmednagar district staged his own death by killing a destitute man in ... Read more »

Centre to HC: Marriage is between biological man and biological woman

© Provided by The Indian Express The law is settled that marriage is a term associated with a biological man and a biological woman, the Centre argued Monday before the ... Read more »

Potato milk and ‘climatarianism' will be 2022's biggest food trends, report finds

© Provided by The Independent Sure, you’ve tried almond milk, oat milk and even gone full-circle back to dairy-based milk, but have you tried potato milk? This “milk” derived from ... Read more »

Authorities use DNA to identify victim of serial killer John Wayne Gacy

Cook County Sheriff Tom Dart. AP Photo/Charles Rex Arbogast Through DNA testing, police in Chicago have been able to identify a victim of serial killer John Wayne Gacy, whose name ... Read more »

Australian prime minister will take net zero target to COP26

© AAP IMAGE Australia Climate Change – AAP IMAGE Australia will commit to a target of net zero carbon emissions by 2050 but will not increase its goal for 2030 ... Read more »

Emmerdale fans baffled by hospital blunder as Manpreet discovers Meena in Victoria's room

Emmerdale fans were left baffled after Manpreet Jutla found her sister Meena in what was her love rival Victoria Sugden’s hospital room after she had been discharged and not her ... Read more »

Russian navy stops pirates hijacking Panamanian ship off coast of Nigeria

Russian destroyer Vice-Admiral Kulakov seen from the HMS Somerset in 2017 – ROYAL NAVY An attempt to hijack a Panama-registered container ship has reportedly been thwarted by the Russian navy. ... Read more »

Police officers abusing position for sexual gain is most common form of corruption, watchdog says

© Getty Images/iStock The Independent Office for Police Conduct called for zero tolerance – Getty Images/iStock Police officers abusing their position for sexual gain is now the most common form ... Read more »

Stop using aid cash to invest in fossil fuels, MPs tell government

© Copyright 2021 The Associated Press. All rights reserved. The UK government’s aid finance arm invests in fossil fuels – AP The government should stop using aid cash to invest ... Read more »

‘Delinquent' Matt Gaetz's licence to practise law in Florida suspended for failing to pay bar association fees

© The Des Moines Register IADES103 – The Des Moines Register Florida congressman and Trump ally Matt Gaetz was briefly labelled a “delinquent” by the Florida Bar, the state’s legal ... Read more »

Tom Brady's 600th touchdown ball nets fan big Buccaneers haul

What’s a piece of sports history worth? It’s not quite $500,000, but the ball from Tom Brady’s 600th touchdown pass did get one fan a pretty nice haul. The Buccaneers ... Read more »

How ‘Biden Bucks' will gut the American work ethic

President Joe Biden gives a speech on his Bipartisan Infrastructure Deal and Build Back Better Agenda at the NJ Transit Meadowlands Maintenance Complex on October 25, 2021. Michael M. Santiago/Getty ... Read more »

California lawmaker wants to ban live guns on movie sets after Baldwin mishap

The film set on Bonanza Creek Ranch where Alec Baldwin fatally shot cinematographer Halyna Hutchins in a mishap. KOB TV News/Handout via REUTERS A California state senator is proposing a ... Read more »

Pemuda UMNO, Perkeso bekerjasama pastikan kebajikan pekerja p-hailing

© Provided by Sinar Harian SHAH ALAM – Pemuda UMNO dan Pertubuhan Keselamatan Sosial (Perkeso) mencapai persetujuan untuk mewujudkan kerjasama strategik jangka panjang bagi memastikan kebajikan dan pembelaan kepada pekerja ... Read more »

Prosecutors missed deadline in Jan. 6 riot case

Oct. 25—Federal prosecutors asked for an extra two weeks to figure out how long it will take to get the bulk of the evidence in the Jan. 6 riot at ... Read more »

‘One of the few things that makes me angry is Abba': Alex Horne's honest playlist

The first single I ever bought The Loco-Motion by Kylie Minogue. My brother and I were both big Kylie fans and I still stand by it: she’s one of the ... Read more »

Benarkah khasiat EPAL boleh TURUN @ NAIKKAN berat badan?

© Provided by Free Malaysia Today Epal amat kaya dengan pelbagai jenis nutrient seperti vitamin, mineral dan lain-lain yang sangat bagus untuk tubuh badan. (Gambar Rawpixel) Makan sebiji buah epal ... Read more »

Food trends in 2022 will include potato milk, dinner parties and ‘climatarian' diets, Waitrose says

Everyone will be guzzling potato milk, serving pre-batched cocktails and hosting umami-laden dinner parties in 2022, according to Waitrose. In its annual Food & Drink Report, the supermarket predicted new ... Read more »

Riot has fixed the Jett bugs from VALORANT Patch 3.08 deployment

The VALORANT team at Riot Games has announced that the bugged changes to Jett that were accidentally implemented with Patch 3.07 have now been fixed. © Provided by Dot Esports ... Read more »

Man arrested after vehicle runs into vaccine mandate protesters in California

A California man was arrested Saturday after police said he drove a Jeep Wrangler into a crowd of people protesting COVID-19 vaccine mandates in Palmdale, according to the Los Angeles ... Read more »

World of Warcraft's ‘old world' could be getting its first update in over a decade

Between the radical and exciting additions of one expansion or another, it’s been a while since the older sections of World of Warcraft’s Azeroth got a bit of TLC. But ... Read more »

49ers activate Jordan Willis from suspended list

© Provided by NBC Sports The 49ers activated defensive lineman Jordan Willis the reserve/suspended list. The team is granted a one-week roster exemption for Willis as he works his way ... Read more »

Saudi Dissident Speaks Out, Calling Crown Prince 'a Psychopath' and Claiming He Spoke of Poisoning Former King

A former Saudi Arabian intelligence official claimed in a new interview that Crown Prince Mohammed bin Salman talked about killing the kingdom’s former monarch, King Abdullah, in 2014. © Provided ... Read more »

Garland faces relentless GOP pressure after issuing memo on school board threats

A Justice Department memo that has put Attorney General Merrick Garland in the center of the roiling political controversy over masks and history lessons in schools continues to fuel Republican ... Read more »

Dancing On Ice pros Hamish Gaman and Yebin Mok dropped from 2022 line-up

Dancing On Ice will be saying goodbye to some of the show’s most beloved professionals ahead of the 2022 series – with Hamish Gaman among those exiting. Hamish, Yebin Mok ... Read more »

First polls close in Nunavut territorial election

© Mario de Ciccio/Radio-Canada Residents of the Iqaluit-Manirajak constituency voted at the Cadet Hall on Monday. The first polls have closed in Nunavut’s territorial election. Joanna Awa, host of CBC Nunavut’s ... Read more »

Agenda Bajet Belia 2022 cadang Dasar Ekonomi Belia diwujudkan

© Provided by Sinar Harian SHAH ALAM – Agenda Bajet Belia 2022 mencadangkan Dasar Ekonomi Belia diwujudkan melalui insentif, geran-geran bantuan dan pembiayaan boleh ubah yang mesra belia bagi memperkasakan ... Read more »

Ex-CM Adly's leave application to block Melaka polls to be heard on Nov 8

© Provided by The Edge KUALA LUMPUR (Oct 25): Former Melaka chief minister Adly Zahari’s application for leave to initiate a judicial review to challenge the dissolution of the State ... Read more »

Lawmakers defer some Jan. 6 document requests, seeks others

WASHINGTON (AP) — The House committee investigating the Jan. 6 insurrection at the U.S. Capitol “deferred” its requests for several dozen pages of Trump administration records at the White House's ... Read more »

SPAC linked to Trump social media venture edges lower as short seller targets

FILE PHOTO: Former U.S. President Trump holds rally in Iowa (Reuters) – Shares of the blank-check acquisition company that plans to publicly list former U.S. President Donald Trump's new social ... Read more »

Judge to rule on barring union from discussing vaccine order

CHICAGO (AP) — A judge is expected to rule Monday about whether to extend an order barring the president of the Chicago police union from making public statements encouraging members ... Read more »

J Balvin apologises for controversial Perra video

© Bang Showbiz J Balvin J Balvin has apologised for his ‘Perra’ music video. The 36-year-old star has been widely criticised for the controversial video, which features him walking two ... Read more »

Ivey directs agencies to resist COVID vaccination mandate

MONTGOMERY, Ala. (AP) — Alabama Gov. Kay Ivey on Monday directed state agencies to ignore the federal COVID-19 vaccine mandate, where possible, and instead cooperate with the state’s efforts to ... Read more »

Democrats Inch Toward Deal as Manchin Says Framework in Reach

(Bloomberg) — Democrats stepped closer to an agreement on President Joe Biden’s agenda as Senator Joe Manchin, who has been pushing to shrink the size of the package, said a ... Read more »

2 killed, several injured in shooting at Idaho mall

At least two people were killed and four were injured in a shooting at a Boise, Idaho shopping mall on Monday. The Boise Police Department said a police officer was ... Read more »

The Affidavit From The Rust Set Tragedy Is Now Public

Jim Bennett/Getty More details have emerged about the tragic shooting death of cinematographer Halyna Hutchins, including how Alec Baldwin “had been very careful” about gun safety in the days and ... Read more »

Dave Chappelle won't ‘bend to demands' of ‘Transgender community' over ‘Closer' controversy

Dave Chapelle’s recent comedy show “The Closer” caused controversy for its anti-trans comments. Samir Hussein/WireImage Dave Chappelle is addressing his controversial Netflix comedy special “The Closer” after his comments about ... Read more »

Letters to the Editor — Oct. 26, 2021

Cinematographer Halyna Hutchins was accidently shot and killed on the set of the western film, “Rust.” VIA REUTERS The Issue: Alec Baldwin’s accidental fatal shooting of cinematographer Halyna Hutchins on ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic