Metal stocks tumble up to 5% after record rally
What's the story
Shares of metal companies such as Hindustan Zinc, Hindustan Copper, NALCO, and Vedanta are witnessing a sell-off today. The trend comes after a record rally that saw most of these stocks reach multi-year or even record highs. All 15 stocks on the Nifty Metal index are trading in the red today.
Market performance
Hindustan Zinc leads Nifty Metal index losses
Hindustan Zinc, a Vedanta subsidiary and the only Indian company to focus on silver mining, is leading the losses on the Nifty Metal index. The stock has fallen nearly 5% today after a massive 26% gain in December. Citi has predicted that silver could witness outflows of up to $7 billion as part of Bloomberg Commodity Index's annual rebalancing exercise from January 9-15.
Stock decline
Hindustan Copper's shares dip after December surge
Hindustan Copper, whose shares hit a 15-year high after a whopping 58% rise in December, is also witnessing a fall for the second consecutive day. The stock had ended its four-day winning streak on Wednesday. NALCO and JSPL are the other major losers on the Nifty Metal index, both trading with losses of around 4% each today.