Investors usually shed metal stocks over growth concerns. Analysts noted that metal companies have come under renewed pressure ahead of the crucial US-China trade meet later this week. Investors fear that the tension between the two major economies might escalate and hurt global growth prospects.
The S&P BSE Sensex declined by 71.53 points or 0.18 per cent to 39,122.96, while the NSE Nifty50 fell by 24.45 points or 0.21 per cent to 11,699.65.
Domestic investors were also worried over the delay in monsoon, which is crucial to revive the ongoing consumption slowdown. This, along with caution ahead of the budget, have kept the Sensex and Nifty in a tight range for the past few weeks.
"Consolidation is continuing as investors are waiting for the government to announce some concrete measures to support the weakening economy," said Vinod Nair, Head of Research, Geojit Financial Services.
Nair added that lack of triggers and premium valuation was impacting new investment, while delay in monsoon and F&O expiry may add to the volatility.
At the last Monetary Policy Committee (MPC) meeting, Reserve Bank of India Governor Shaktikanta Das, while giving rationale for a rate cut, had said that there was clear evidence of the economic activity losing traction.
( With inputs from IANS )