Weak global sentiment affects steel and aluminium stocks
Kolkata: As global ferrous and non-ferrous metal prices in the last two days have declined it has affected prices of the stocks of local metals and mining heavyweights. Apprehensions over a fall in demand has prompted metals prices to register declines.

While Tata Steel stock went down by about 4 per cent, SAIL has dipped by around 6 per cent. In the case of aluminium stocks, Hindalco has shed around 6 per cent and Nalco about 4 per cent. The iron ore exporter, Sesa Goa has slipped by about six per cent too.

Metal prices, which had registered multi-year highs on the London Metal Exchange earlier this week, have reacted sharply to several bits of negative news in the later part of the week. Production and job cuts by some of the leading carmakers and drop in the Chinese demand have reportedly put pressure on the prices.

Arcelor, the largest European steel producer announced production cut apprehending a 14 per cent drop in apparent demand. ACEA, the European association of car manufacturers has reported fall in car registration in February last. US steel makers have, of late, complained about deteriorating outlook. In an interesting turn of the events, China's 16 major steel mills took stand on April 11 that they would rather cut their production than to accept the "unreasonable" price hike demand of the overseas iron ore suppliers.

As a result, on Wednesday, Australian mining major BHP Billiton agreed to forego its demand for a freight premium of around $10 per tonne of iron ore sold to China.
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India tops fund inflows in the emerging markets
Kolkata: India still holds the top position in terms of overseas fund inflows among the emerging markets with a total net investment of $3,909.90 million from January 1 to April 13. This is despite a slowdown in April in all the emerging markets.

The net outflow from emerging markets equities funds slowed down in the week to April 6 as worries about monetary tightening and oil prices eased. Investors pulled out money from the global and international equity funds for the first time in 12 weeks and retreated from US and European equity funds as well.

The emerging market equity funds, according to Emerging Portfolio Fund Research, saw outflows of $354.6 million, considerably less than the average $1.1 billion of outflows in the previous two weeks. In contrast, Indian equities attracted a net investment of $168.10 million from April 1 to April 6.

Among the Asian markets, in January, India was in fourth position in terms of funds inflow with $101.30 million in its kitty. Japan at the top then attracted a little over $600 million worth of net investments, followed by Taiwan in the second slot drawing a net inflow of over $450 million and Thailand about $200 million.

Investments into Indian equities jumped in February, and in March, maintaining the lead over others in Asia and the emerging markets. At the end of February, net FII investment figures stood at $2,011.80 million and at March-end was at $3,727.60 million.
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