Nifty Metal Sheds 9%, Hind Zinc Crashes 20% in Just Two Days | Stock Market Today

The metal space has suddenly lost its shine.

After weeks of steady gains, the Nifty Metal index slipped into sharp correction mode, falling 9% in just two trading sessions. Individual stocks took an even bigger hit, with Hindustan Zinc tumbling 20% in two days, shaking investor confidence across the metal pack.

This move didn’t come out of nowhere. It followed a strong rally and rising volatility in global base metal prices—something the market often reacts to swiftly.

Market Performance: Sharp Reversal in Metal Stocks

The broader market stayed relatively steady, but metals clearly didn’t.

Over the last two trading sessions since January 29:

• Nifty Metal index dropped 9%
• Nifty 50 declined only 2.3%

This divergence highlights how sector-specific profit booking can hit hard—even when the broader market doesn’t collapse.

What makes this move stand out is how quickly sentiment flipped.

A Look Back: Strong Rally Before the Fall

Before this correction, metal stocks were among the strongest performers in the market.

In January:

• Nifty Metal surged 11.7%
• Nifty 50 slipped 2.7%

The sector clearly outperformed on the way up, and now, just as visibly, it’s underperforming on the way down.

This sharp up-and-down movement suggests that traders locked in gains after the rally, especially as global cues turned uncertain.

Main News: Heavy Selling Across Metal Stocks

The selling pressure wasn’t limited to one or two names. It spread across the entire metal basket.

Worst-hit metal stocks in the recent fall

• Hindustan Copper: down up to 21%
• Hindustan Zinc: down up to 20% in two days
• Nalco: declined 8–17%
• Vedanta: declined 8–17%
• Hindalco Industries: declined 8–17%
• Tata Steel: declined 8–17%

The breadth of the fall shows broad-based selling, not stock-specific weakness.

Why Did Nifty Metal Fall So Sharply?

Two key factors stood out:

• Increased volatility in base metal prices
• Profit booking after a sharp January rally

After a sector rallies hard, even a small change in global cues or pricing trends can trigger heavy unwinding. That’s exactly what seems to have played out here.

The speed of the fall suggests that positions built during the rally were quickly exited.

Company Snapshot: Hindustan Zinc in Focus

Among all names, Hindustan Zinc drew the most attention.

• Stock fell 20% in just two sessions
• Came after strong participation during the earlier rally
• Movement aligned with broader sector weakness

The stock’s fall reflected sector sentiment, not isolated company news—highlighting how metal stocks often move together during corrections.

What This Move Says About Market Sentiment?

The sharp fall in Nifty Metal is a reminder of how quickly markets can switch gears.

• Strong rallies often invite profit-taking
• Sector leadership can reverse faster than expected
• High-beta sectors like metals tend to amplify moves—both up and down

While the broader market saw limited damage, metals absorbed the full impact of shifting sentiment.

Summary: What Happened in the Metal Space?

To sum it up clearly:

• Nifty Metal fell 9% in two days
• Hindustan Zinc dropped 20%
• Hindustan Copper lost up to 21%
• Other metal stocks declined 8–17%
• Fall followed a 11.7% January rally
• Pressure linked to base metal price volatility and profit booking

The metal sector’s rapid swing shows why momentum-driven moves often come with heightened risk—especially after sharp gains.

For now, attention is firmly on the direction of global metal prices and whether the sector can find its footing again after this sudden, sharp correction.

Source: Business Standard