MCX, Hindustan Zinc, Muthoot Finance, Vedanta shares fall up to 15% due to decline in gold, silver prices

MCX, Hindustan Zinc, Muthoot Finance, Vedanta shares fall up to 15% due to decline in gold, silver prices

• MCX, Hindustan Zinc, Vedanta shares fell up to 15% after metal prices plunged
• Gold and silver prices fell 6% on MCX due to a stronger US dollar and profit-taking.
• Trump nominates Kevin Warsh as Federal Reserve chair, affecting global markets

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Shares of MCX, Hindustan Zinc, Vedanta, gold financier stocks like Muthoot Finance, Manappuram, IIFL Finance declined up to 15% on February 1 due to massive fall in prices of precious metals.

Silver on MCX opened at Rs 2.74 lakh/kg, down 6% versus Friday’s close of Rs 2.92 lakh/kg while gold on MCX was trading at Rs 1.43 lakh/10 grams, down 6% vs Friday’s close of Rs 1.49 lakh/10 grams.

At 9:35 am on February 1, MCX shares were trading 15% lower at Rs 2,148.8 apiece while Hindustan Zinc stock was trading at 10% lower circuit at Rs 565.65. This is the biggest single-day fall in MCX shares in six years.

Meanwhile, Vedanta shares were trading 7% lower at Rs 635.35 apiece and gold financier stocks like Muthoot Finance, Manappuram, IIFL Finance were trading 6%, 3.4%, 3.3% lower, respectively.

Hindustan Zinc is the largest producer of silver in India and Vedanta is its promoter. Recently, Vedanta held an OFS to sell up to 1.6% stake in Hindustan Zinc.

Hindustan Zinc lost Rs 63,000-crore market capitalisation in the two-day fall while that of Vedanta plunged Rs 54,000 during the same time period.

The shares track global metal prices on a stronger dollar and profit-taking after a recent rally.

Gold and silver prices plunged Friday as the US dollar surged and investors took profits, following news of US President Donald Trump's nomination of Kevin Warsh as the next Federal Reserve chair.

At market close, the most-active gold futures contract on the New York Mercantile Exchange (NYMEX) settled at 4,745.10 U.S. dollars per ounce, down 11.3% from the previous trading day. Silver futures also suffered significant losses, with the benchmark contract dropping 31.37%to 78.531 U.S. dollars per ounce.

Trump announced on Friday that he is nominating Kevin Warsh, a former Federal Reserve governor, to be the next chair of the central bank.