Metals' loss is infra and capital goods firms' gain

But experts see interest rate hikes offsetting some of the gains

- VIVEAT SUSAN PINTO

A decline in global prices of metals both ferrous and nonferrous- has brought firms in user industries, such as capital goods and infrastructure (infra), some respite. These companies have been reeling from the impact of commodity inflation for some time now, pushing many to give a bleak outlook on margins.

That scenario is undergoing change, with metals like aluminium, copper, nickel, tin, and steel correcting sharply in recent weeks.

While the metal index on the London Metal Exchange, which tracks base metals like aluminium, copper, lead, nickel, tin, and zinc, corrected nearly 2 per cent in the past five days, it was a sharper fall at 8 per cent in the past month and nearly an 18 per cent drop in three months, according to the data compiled by BS Research Bureau.