Metal and real estate stocks plunged on August 22. Both sector indexes fell sharply. This occurred before Federal Reserve Chair Jerome Powell’s speech. He spoke at the Jackson Hole symposium.
The Nifty Metal index dropped over 0.7 percent. It reached 9,424. The Nifty Realty index fell more than 0.5 percent. It traded around 912 by 10:20 am.
The US central bank’s symposium runs August 21-23. It takes place in Jackson Hole, Wyoming. Fed Chair Powell was set to discuss the economy. He would also cover monetary policy.
President Donald Trump criticized Powell. He often urged rate cuts. Trump called Powell “Jerome ‘Too Late’ Powell.” He claimed Powell acted too slowly on interest rates. Trump stated Powell was hurting housing. He again asked for lower rates.
Most investors anticipate a 25-point Fed rate cut next month. A US rate cut could lower borrowing costs. This might draw foreign investors to India. Such investment helps real estate and metal stocks. Investors also think the RBI might match a Fed cut. This could also help stocks.
JSW Steel and Jindal Steel & Power shares lost over 1.3 percent each. SAIL and Hindustan Zinc shares dropped more than 1 percent each.
Adani Enterprises, Hindustan Copper, Tata Steel, and NALCO shares fell nearly 1 percent. Hindalco, Vedanta, and Welspun Corp shares saw small losses.
Raymond shares led realty index decliners. They fell almost 2 percent to Rs 622. Oberoi Realty, Macrotech Developers, DLF, and Anant Raj shares dropped nearly 1 percent. Phoenix Mills, Brigade Enterprises, and Godrej Properties shares traded lower.