The stock market saw metal shares slipping for the second straight session, with Nalco and Hind Copper among the top decliners. A recent rally in metal prices seemed to pause, as investors booked profits, pushing the shares down to a one-week low.
Market Performance: Metal Stocks Slide
Thursday’s trading session highlighted a notable decline in the Nifty Metal index, which fell nearly 3% to 11,215, marking its sharpest single-day drop since April 2025.
This downward move came after a strong six-day rally, during which metal stocks had gained momentum. The correction reflects a combination of retreating global metal prices and investor profit-taking.
- NALCO fell around 5%
- Hind Copper shares also declined close to 5%
- Other metal companies like Jindal Stainless Steel, Jindal Steel & Power, Vedanta, and Hindustan Copper saw drops of around 4%
- Hindalco Industries, NMDC, SAIL, JSW Steel, and Tata Steel fell more than 2%
Prior to this correction, the Nifty Metal index had risen for six consecutive trading days, gaining almost 5% and showing strong momentum over the last month.
Key Drivers Behind the Decline
The recent drop in metal stocks aligns with a broader fall in global metal prices. Key movements included:
- Silver futures on MCX declined up to ₹4,000/kg
- Gold, aluminium, and copper futures fell around 1% each
These shifts caused metal stocks to retrace after a sharp surge, with investors taking profits at elevated levels.
Company Highlights: Production and Performance
While stock prices pulled back, metal companies continue to maintain steady operations:
- Tata Steel reported record production in India for the December quarter:
- Crude steel output: 6.34 million tonnes
- Year-on-year growth: over 11% (from 5.69 million tonnes)
- Growth driven by higher output at Jamshedpur and Kalinganagar plants
Other major players in the sector continue to operate with stable production and supply chain operations, supporting medium-term prospects despite short-term price corrections.
Summary
The metal sector faced a sharp correction on Thursday, with Nalco and Hind Copper shares dropping around 5%, extending losses for the second consecutive session. Falling global metal prices and profit booking after a recent rally were key contributors.
- Nifty Metal Index: Down 3%, at 11,215
- Silver, gold, copper, aluminium: Prices declined between 1–2%
- Sector trend: After six days of gains, the index faced a mild pullback
Investors saw a temporary pause in the metals rally, reflecting normal market corrections following recent gains. Despite the dip, production numbers from major companies like Tata Steel indicate that the sector’s operational fundamentals remain strong.
Source: Moneycontrol
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