The Nifty Metal index came under heavy selling pressure on Friday, dragged down by sharp declines in major constituents such as Hindalco Industries, Hindustan Copper, Jindal Stainless, and Hindustan Zinc. The index fell 1.50% intraday to 10,230 and is on track for its worst weekly performance since July, with a 2.50% drop for the week.
One of the main reasons for the decline is the steady rise in the US Dollar index, which has stayed above the 100 mark and is likely to post a weekly gain of nearly 1%. Investors expect the Federal Reserve to hold interest rates steady in December, and recent mixed US job data has not changed that outlook.
A stronger dollar makes commodities costlier for holders of other currencies. As a result, global metal prices have weakened. Three-month copper on the London Metal Exchange fell 0.39% to US$10,696.5 a tonne and is down 1.41% for the week. Aluminium also slipped 0.73%.
Apart from global cues, domestic developments also weighed on metal stocks. The government extended exemptions from mandatory quality control rules on certain steel and stainless-steel grades. This move could lead to higher imports and may put pressure on local steel prices.
Profit booking has also contributed to the declines. Metal stocks had rallied sharply in recent months (the Nifty Metal index gained 6% in October and 10% in September) making them more vulnerable to corrections.
| Stock | Daily Fall (%) |
| Hindalco Industries | -3% |
| Hindustan Copper | -1.5% to -2% |
| Jindal Stainless | -1.5% to -2% |
| NALCO | -1.5% to -2% |
| Hindustan Zinc | -1.5% to -2% |
| Jindal Steel | -1.5% to -2% |
| Welspun Corp | -1.5% to -2% |
Other large names such as NMDC, JSW Steel, and Tata Steel, fell more than 1% each, adding to the overall drag on the index.
Read more: Infosys Buyback History: How Has the Stock Reacted Over the Years?
The fall in the Nifty Metal index reflects a mix of global and domestic pressures. A stronger US dollar, softer international metal prices, import concerns, and profit booking all contributed to the downturn. While the sector has corrected from recent highs, metals remain one of the better-performing indices of 2025, up 18.30% so far. Investors will now watch global currency trends and domestic policy cues to gauge the sector’s next move.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Nov 21, 2025, 12:22 PM IST
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