Metals' loss is infrastructure and capital goods companies' gain

Interest rate hikes, however, remain a pet peeve

A decline in global prices of metals - both ferrous and non-ferrous - has brought firms in user industries, such as capital goods and infrastructure (infra), some respite. These companies have been reeling from the impact of commodity inflation for some time now, pushing many to give a bleak outlook on margins.

That scenario is undergoing change, with metals like aluminium, copper, nickel, tin, and steel correcting sharply in recent weeks.

While the metal index on the London Metal Exchange, which tracks base metals like aluminium, copper, lead, nickel, tin, and zinc, corrected nearly 2 per cent in the past