Metal Stocks Tumble: Hindustan Copper, Tata Steel Lead Nifty Metal Decline

The stock market today saw a surprising twist for metal stocks as they slipped despite broader market gains. Nifty Metal index emerged as the only sector trading in the red, reflecting a clear pullback in select metal shares.

Market Performance

• Nifty Metal index fell to 10,237, down more than 1% by midday, driven by declines in key metal stocks.
• Most top metal companies recorded losses between 1% and 6%, signaling a day of cautious trading.
• Rupee weakened slightly against the US dollar, standing at 88.70, influencing the overall metal sector sentiment.

Key Movers in Metal Stocks

The day’s trading highlighted notable activity among major metal companies:

• Hindustan Copper: The top laggard, down nearly 6% to Rs 343.60 per share.
• Hindustan Zinc: Fell nearly 4%, trading at Rs 493.50.
• SAIL and NALCO: Dropped over 2% each.
• NMDC, Jindal Steel & Power, Tata Steel: Fell around 2%.
• Vedanta, Hindalco, JSW Steel: Declined close to 1%.
• Welspun Corp: Traded with marginal losses.

A few metal companies bucked the trend, showing modest gains, including Adani Enterprises, APL Apollo Tubes, and Jindal Stainless Steel.

Reasons Behind the Decline

Several factors influenced the downward movement in metal shares:

• Stronger Dollar: The US dollar strengthened while the rupee weakened, pushing metal prices higher in dollar terms. This made commodities like copper, aluminum, zinc, and silver more expensive for Indian buyers, affecting demand sentiment.
• Silver Price Correction: Silver futures corrected after a record rally, with December contracts trading at Rs 1,46,600 per kg, down from a lifetime high of Rs 1,53,388 per kg. Futures expiring in March and May dropped around 0.5%, July expiry fell 1.5%, and September contracts tumbled nearly 3%. This correction impacted stocks like Hindustan Zinc, India’s largest silver producer.
• Geopolitical Developments: The first phase of a truce in the Gaza conflict, involving a ceasefire and hostage deal, may have shifted investor preference away from safe-haven commodities toward riskier assets.
• Profit Booking: Following a strong 2% rally in the Nifty Metal index on the previous day, some investors opted to book profits, contributing to the decline.

Summary

The session underscored a day of selective profit booking and market recalibration in metal stocks. While broader markets moved up, metal shares reacted to currency movements, commodity price corrections, and global events.

Key Takeaways:

• Nifty Metal index dropped to 10,237, down more than 1%.
• Hindustan Copper fell nearly 6% to Rs 343.60, leading losses.
• Tata Steel and other key metals declined 2–2.5%.
• Strong dollar, silver price correction, geopolitical developments, and profit booking shaped trading today.

Investors monitoring metal shares, Nifty Metal, Hind Copper share price, Tata Steel share price, JSW Steel, SAIL, NALCO, and other related stocks witnessed a mixed day with clear sectoral pressure.