Metals faced intense selling pressure in Thursday’s trade (January 8), with the Nifty Metal index plunging as much as 2% to 11,293 on the National Stock Exchange (NSE).
All 15 Nifty Metal constituents were in the red at the time of writing this report. Hindustan Zinc emerged as the worst-performing metal stock, losing nearly 5% to trade at ₹599.25, its lowest level since August 2024.
National Aluminium Company Limited (NALCO) and Hindustan Copper cracked 4.3% and 4.7%, respectively, while Vedanta shed over 3%.
The decline in these metal stocks coincided with a drop in base metal and silver prices, as the revenues, margins, and cash flows of these companies are closely tied to global commodity prices.
Copper and nickel prices fell over 2% as investors booked profits, extending a pullback from recent record highs. Elsewhere among Shanghai Futures Exchange base metals, aluminium lost 1.99%, zinc shed 1.40%, lead declined 1.75% and tin dropped 1.53%, data from Reuters showed.
Other top losers also included steel companies, including Jindal Steel, SAIL, and JSW Steel. Tata Steel lost the least among all metal stocks part of the Nifty Metal pack.
What’s behind the fall in metal stocks today?
Analysts attribute streched valuations and profit booking amid today’s fall in metal stocks.
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