Metal shares came under pressure in the stock market today, and the mood across the sector felt noticeably cautious. A stronger dollar, weaker Asian currencies, and concerns around US economic cues all fed into a day dominated by selling. The impact was sharpest on stocks like Hindustan Zinc and Hind Copper, which turned into the biggest drags on the metals basket.
Market Performance: Nifty Metal Index Takes a Hit
The metal space stood out for the wrong reasons on November 18.
Among 16 major sectoral indices, Nifty Metal logged the deepest cut.
- Nifty Metal Index: Down 1.5%
- Index Level: 10,325
The weakness lined up with a steady Dollar Index at 99.5, while several Asian currencies slipped 0.1% to 0.6%, adding to the pressure across metal counters. Traders kept a close eye on incoming US economic data, especially the much-watched September nonfarm payrolls report scheduled later in the week.
Despite today’s fall, the larger picture still showed strength:
- Nifty Metal gains in 2025: 19.5%
- Benchmark index growth: 9.5%
So while the day belonged to the bears, the broader year-to-date momentum remained intact.
Main News: Stronger Dollar Pulls Metal Shares Lower
The core trigger behind the decline in metal shares was the firmer dollar.
Base metals like copper and aluminium had already been under pressure, and the rising greenback intensified that fall.
A stronger dollar makes metals priced in USD more expensive for global buyers.
That’s why the sentiment around copper, aluminium, zinc, and other industrial metals weakened further during the session.
Two stocks became the clear laggards:
- Hindustan Zinc: Down 3%
- Hind Copper: Down 3%
- SAIL: Fell over 2%
Market mood softened even more as hopes of a December US Fed rate cut faded.
The odds of a 25 bps cut on December 10 dropped sharply:
- Earlier probability: 62.4%
- Revised probability: 42.9%
Higher US rates typically strengthen the dollar, reducing the appeal of emerging markets such as India. That shift is reflected clearly in the way metal shares moved today.
Another element adding to the unease was news around the suspension of quality control orders on 55 steel grades, which weighed on sentiment across steel companies.
Company Details & Sector Dynamics
Beyond the immediate fall in metal shares, the broader market narrative involved several moving parts.
- Industrial metals saw pressure as investors reduced exposure to riskier assets ahead of key US events, including the crucial jobs report.
- Some Fed officials signaled caution around further rate reductions, creating uncertainty for commodities linked to economic activity.
- An ongoing diplomatic spat between China and Japan added another layer of risk, as any disruption between the two major economies could impact commodity trade flows.
Aluminum had surged to a three-year high earlier in November due to strong demand, particularly from China, and tight global supply.
But prices have cooled, moving in line with the broader metal pullback as questions around US economic strength kept traders defensive.
Summary: Metal Shares Face Pressure as Global Cues Turn Unfavorable
The drop in metal shares on November 18 was shaped by a combination of a stronger dollar, fading hopes of a near-term US Fed rate cut, and softer sentiment across global commodity markets.
Stocks like Hindustan Zinc and Hind Copper bore the brunt of the fall, each sliding 3%, while the Nifty Metal index ended 1.5% lower at 10,325.
Even as the broader 2025 performance remains positive for the metal sector, the day highlighted how quickly global developments from currency movements to policy signals can influence the tone in the Indian market.
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