Not just Greece, weak Dollar and Chinese market pulling down the sensex

Iron ore miner Vedanta led commodity stocks lower as a strong Dollar, weakness in Chinese markets and the Greek referendum vote going against the EU's bailout hurt sentiment on miners, steel producers and aluminium makers.

Losses on these stocks outpaced the drop on the main index.

Vedanta fell 4.6 percent to 160.50. Hindalco down 2.4 percent to 108 rupees and Tata Steel dropped 2.3 percent to 294.20 rupees. All four stocks lead the losers list on the Nifty, which fell 0.7 percent.

The Dollar has gained strength versus other currencies following safe haven buying after the Greek vote. Commodity prices are inversely related to the Dollar, hence the drop in their stock quotes. A sustained fall in Chinese markets is also spooking sentiment on the commodity space.

Hindalco, Nalco and JSPL also figured on the list of 52-week lows.

NMDC, meanwhile, reported its Iron Ore production details for the first quarter. Volume sales plunged 24 percent to 5.93 million Tons at a time when it also cut prices for iron ore fines by 300 rupees a ton to 1,660 per ton for the month of July. Since NMDC is also on the list of companies to be divested partially by the Government, its stock is under additional selling pressure.

(image credits: mining-technology.com)