BENGALURU, Oct 20 (Reuters) - Indian shares slipped on
Wednesday, dragged by metal stocks as China's pledge to contain
coal prices eased supply worries, while investors eyed corporate
commentaries in the earnings season after Hindustan Unilever
warned of margin impact.
The NSE Nifty 50 index fell 0.2% at 18,386, while
the S&P BSE Sensex was flat at 61,698.40 by 0520 GMT.
The Nifty metals index was the top loser among
indexes, falling nearly 2%.
China's state planner said on Tuesday it was studying ways
of intervening in high coal prices and would take all necessary
measures to bring them back to a reasonable range, dragging
industrial metal prices.
"There will regulatory interventions across geographies as
metal prices directly impact raw material costs for companies
that are into manufacturing," Equitymaster analyst Vijay L
"We will see profit-taking with the fall in prices. But, the
rally in metal companies is not over as money is coming into the
Shares of mining companies are directly correlated to the
metal prices. Base and industrial metal prices have rallied in
the past few days on concerns over mine supply disruptions due
to higher energy costs.
India's aluminium producers are drawing expensive power from
the national grid, adding to pressure on utilities with low coal
stocks as state-run Coal India curbs supplies, Reuters
Meanwhile, analysts said investors were awaiting corporate
views during September-quarter earnings as higher commodity
costs and raw material expenses are expected to hurt margins for
companies even as they post profit increases.
Consumer giant Hindustan Unilever dropped 0.8%
after it warned that margins could remain under pressure in the
near term due to elevated commodity prices.
Cement maker ACC Ltd rose 4.3% after reporting
strong results, while agriculture input maker Rallis India
dropped 5.4% on posting big drop in profit.
(Reporting by Nallur Sethuraman in Bengaluru; editing by