Till August 23 close, the BSE Metal index was down 28.33 percent year-to-date against the rise of 1.75 percent in the benchmark Sensex
Most metal stocks tumbled on August 26, causing their sectoral index on BSE to suffer a loss of almost 5 percent.
The metal pack witnessed a fresh wave of selling after the China-US trade war escalated, weighing further on global growth.
On August 23, the US President Donald Trump announced an additional duty on ~$550 billion of targeted Chinese goods, hours after China unveiled retaliatory tariffs on $75 billion worth of the US goods, Reuters reported.
Back home, the poor health of the auto sector has weighed on the metal stocks as the auto sector is a major consumer of metals such as steel and aluminium.
"If fewer cars are manufactured, the demand of metal takes a hit," said Sameer Kalra, Founder of Target Investing.
Auto manufacturing has taken a hit due to a slump in demand in the light of liquidity squeeze in the NBFCs and banks.
Besides, high leverages of metal players have also dented the growth prospects of these companies.
"Metal companies have high leverage so the cash flow is also getting hurt," Kalra added.
Around 1025 hours, the BSE Metal index was 4.07 percent down at 8,140, with all components in the red.
Tata Steel was down over 5 percent at that time, followed by JSW Steel (down 5 percent), Vedanta (down 4 percent), Hindalco (down 3.78 percent) and SAIL (down 3.51 percent).
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