Metal stocks today: Metal stocks like Vedanta, Hindustan Zinc, Hindalco and National Aluminium Co (Nalco) fell up to 4% in Monday’s trading session amid stock market crash. Whereas, Nifty Metal index also plunged over 1.29% or 168.45 points to 12918.7.
Nalco share price emerged as the biggest laggard, as the stock fell as much as 3.89% to ₹344.65 per share. Meanwhile, Vedanta and Hindalco shares fell over 3% during the intraday session.
Hindustan Zinc share price also tumbled over 2% on NSE, touching an intraday low of ₹575 today.
On the other hand, Indian equity benchmarks opened lower on Monday, with the Nifty 50 falling below the key 23,000 mark as rising crude oil prices, weakness in the rupee and elevated global bond yields weighed on investor sentiment.
At the time of reporting, the Nifty 50 was trading 215 points, or 0.93%, lower at 22,925.50, while the BSE Sensex declined 665.36 points, or 0.90%, to 73,230.38. The Nifty opened at 23,064.90 and briefly climbed to an early high of 23,080.25 before hitting a low of 22,914.10.
What’s behind the plunge?
According to Prathamesh Kadiwal, Research Analyst at Bonanza, stocks like Vedanta, Hindustan Zinc and Nalco are falling more because of weak global cues, not weak business.
Kadiwal further explained that with crude oil going up, the dollar getting stronger, and fresh fears about inflation and interest rates, investors are pulling out of cyclical stocks.
“Higher energy costs also squeeze producer margins, while softer silver and base metal prices weigh on Hindustan Zinc. So this looks like sentiment driven profit booking across the sector, a correction rather than a collapse,” he added.
Meanwhile, Seema Srivastava, Senior Research Analyst at SMC Global Securities, believes that metal stocks are sliding today primarily due to global macroeconomic headwinds, elevated energy costs, and institutional profit-booking in high-beta cyclicals.
Srivastava said that non-ferrous smelting is highly power-intensive, so hardening crude and coal prices directly threaten operating margins. Simultaneously, a strengthening US dollar and elevated bond yields have pressured base metal contracts on the London Metal Exchange, triggering broad risk-off sentiment across Indian equities.
From a fundamental standpoint, these companies reported resilient Q1 FY27 performance, meaning today’s drop is driven by short-term price realization rather than operational decay.
“NALCO benefited from robust global alumina prices and steady bauxite integration, yet its heavy reliance on spot aluminium makes it vulnerable to daily LME pullbacks. Hindustan Zinc maintains world-class cost leadership with sub-$1,100 per tonne zinc production costs and solid silver realization, though range-bound metal pricing limits near-term multiple expansion. Meanwhile, Vedanta delivered stable operational volumes across zinc and aluminium, but its debt servicing and demerger roadmap leave it sensitive to commodity dips. Because miners are price takers, their earnings remain tethered to global cycles; today’s sell-off represents macro margin compression rather than deteriorating underlying balance sheets,” she added.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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