The Nifty Metal index fell 1.34 percent in the afternoon session on Friday, dragged lower by stocks like Jindal Steel, MOIL, Coal India and Vedanta.

Share Market Live

NSE

At 01:28 pm, the index was down 1 percent and was the top sectoral loser on Nifty. In last one year, the index has lost 10.81 percent.

Steel companies are under pressure after China crude steel output hit a record high in May. The steel mills profit margins are down more than 50 percent due to a jump in iron ore prices following the US-China trade tensions.

"Global steel prices have found little support in 1H19 despite the big rally in iron ore, Beijing’s stimulatory actions and progress on US-Sino trade talks, as global growth concerns and China’s high steel production remained overhangs. We expect ore prices to peak in Q3 and ease materially over Q419-Q120, which should weaken cost support hopes for steel,” CLSA said in a research report.

The brokerage added that the Indian steel prices have come under pressure due to weak global prices and some moderation in domestic demand. It has 'sell' rating on Tata Steel & JSW Steel.

Catch all the latest and live updates here on CNBC TV18 Market Live Blog.

Disclaimer: CNBCTV18.com advises users to check with certified experts before taking any investment decisions.