Metal stocks have remained volatile in the days following Union Budget 2026, reflecting a mix of domestic optimism and global uncertainty.
After strong gains in January driven by commodity rallies, the sector faced a sharp correction before recovering on February 3.
Movements in precious metals, shifts in US monetary expectations and investor positioning have all played a role in shaping recent price action.
Metal shares staged a recovery on February 3, 2026, after retreating sharply from recent highs. The Nifty Metal index rose to 11,888.55, up 327 points or 2.83%, as selling pressure eased across the broader metals complex.
The rebound came after a bout of volatility that followed record-level gains seen earlier in the year.
Several major metal stocks participated in the recovery. Vedanta Limited traded around ₹675.75, up 2.29%, while Hindustan Zinc gained nearly 2.9% to ₹627.80. Hindustan Copper also moved higher, rising 1.37% to ₹618.90. The gains reflected short-covering and stabilisation after recent steep declines.
In the run-up to the Budget, investors had increased exposure to metal stocks as commodity prices surged globally.
Concerns around the US dollar, along with a shift away from traditional currencies and sovereign bonds, supported strong inflows into metals, as per news reports.
This led to sharp rallies across base and precious metals through January.
The correction intensified after renewed global uncertainty emerged over US monetary policy.
According to the news reports, the nomination of Kevin Warsh as the next Chair of the US Federal Reserve unsettled commodity markets.
Investors perceived the move as signalling a more hawkish stance, with greater emphasis on inflation control and tighter financial conditions.
The sell off was led by gold and silver, prompting widespread profit booking across the commodities space. As precious metals retreated, metal equities also came under pressure.
During the decline, Hindustan Copper fell sharply, while stocks such as NALCO, Vedanta and Hindalco Industries also recorded significant intraday losses.
The Nifty Metal index dropped to around 11,218.80 at its lowest point during the sell-off.
The sharp rise followed by an equally swift correction highlights the sensitivity of metal stocks to global cues.
Changes in interest rate expectations, currency movements and commodity price trends continue to influence investor sentiment.
Budget related optimism has been tempered by external factors, keeping volatility elevated in the near term.
Read More: MCX Gold and Silver Prices Today: Precious Metals Crash on Profit Booking Ahead of Budget 2026.
Post-Budget 2026 volatility in metal stocks reflects a combination of strong earlier gains, global monetary policy developments and profit booking in commodities. While the rebound on February 3 indicates some stabilisation, future movements are likely to depend on global macro signals and sustained trends in metal prices rather than domestic factors alone.
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: Feb 3, 2026, 3:15 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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