Indian metal shares crash up to 10%: What's behind it?
What's the story
Shares of metal companies have witnessed a sharp decline, leading the Nifty Metal index to fall nearly 5% in early trade. The slump comes after a three-day winning streak during which the index gained nearly 9%. The current fall is mainly due to profit booking and a significant drop in commodity prices. Gold and silver futures on MCX fell by about 6% each today.
Market speculation
Speculations about US Federal Reserve's leadership impact metal stocks
The fall in metal stocks could also be due to speculation over a possible change in leadership at the US Federal Reserve. President Donald Trump has said he will announce his choice to succeed Jerome Powell as Fed Chair on Friday. This speculation has contributed to the sharp decline in global metal prices, further impacting Indian metal stocks.
Stock performance
Major losers in the metal sector
Hindustan Copper's shares plummeted 10.5% to ₹680 apiece, a day after it hit a new lifetime high of ₹760.05 apiece. National Aluminium Company (NALCO) also saw its shares fall by nearly 10%. Vedanta's shares fell by 8%, despite reporting a 60% year-on-year jump in net profit for Q3 FY26 due to strong base metal prices. Hindustan Zinc, India's largest silver producer, saw its share price fall by 7%.
Market impact
Other metal stocks also witness significant declines
Other major players in the metal sector such as Hindalco Industries, NMDC, Steel Authority of India (SAIL), Tata Steel, Jindal Steel and Lloyds Metals And Energy also witnessed a decline in their share prices. The Nifty Metal index was down nearly 5%, making it the top sectoral loser on NSE against a mere half a percent fall in benchmark Nifty 50.