Indian shares drop as demand worries drag metal stocks

BENGALURU — Indian shares began the week on a tepid note on Monday, dragged by metal stocks due to demand worries and weaker sentiment in global markets.

The NSE Nifty 50 index was down 0.3% at 15,704, while the S&P BSE Sensex was unchanged at 52,930.86. The indexes rose about 0.3% each last week.

The Nifty metals index fell 1.2% as iron ore and steel prices tumbled on fears of a slump in demand for commodities.

The government’s move to introduce export duties for gasoil, gasoline and jet fuel to help maintain domestic supplies, and impose a windfall tax on oil producers on Friday also had an overhang on Indian markets.

Meanwhile, Asian share markets started cautiously on Monday as a run of soft U.S. data suggested downside risks for this week’s June payrolls report, while the hubbub over possible recession was still driving a relief rally in government bonds.

Markets in the United States are closed for a holiday on Monday.

Among individual shares, supermarket chain operator Avenue Supermarts rose 4.2% after the company reported strong sales for the first quarter on Saturday. ​ (Reporting by Nallur Sethuraman in Bengaluru; editing by Uttaresh.V)