Nifty Metal Index Falls Over 4%: NALCO, Hindalco Industries, Tata Steel Drop Up to 7%

Metal stocks came under heavy selling pressure on Friday, with both ferrous and non-ferrous companies declining sharply in intraday trade. The Nifty Metal Index was the worst-performing sector on the National Stock Exchange of India, falling more than 4%, compared with about 1.3% decline in the Nifty 50.

Shares of several major companies dropped between 5% and 7%, reflecting weak sentiment across the sector.

Metal Stocks See Sharp Decline

At around mid-morning trade, the Nifty Metal Index slipped about 4.4% to 11,339.

Among the biggest losers were:

• National Aluminium Company Limited (Nalco) is down about 7%
• Hindalco Industries is down nearly 6%
• Jindal Steel & Power is down around 5%
• Steel Authority of India Limited is down about 5%
• Tata Steel is down roughly 5%
• Vedanta Limited is down about 5%
• Hindustan Zinc Limited is down around 5%
• Hindustan Copper Limited is down nearly 5%

The broad fall indicates weak sentiment across the metal sector.

US Tariff Investigation Adds Pressure

One of the key reasons behind the fall is a new investigation launched by the Office of the United States Trade Representative.

The probe under Section 301 is examining trade practices of India and 15 other countries. If the investigation finds unfair trade practices, the United States may impose new tariffs.

These tariffs could affect exports from sectors such as:

• Steel
• Engineering goods
• Petrochemicals
• Solar modules

Such uncertainty has weighed on Indian metal stocks.

Rising Coal Prices Increasing Costs

Another challenge for the steel industry is rising input costs.

Thermal coal prices in the fourth quarter of FY26 have increased about 12% quarter-on-quarter compared to the average prices in the previous quarter.

Higher coal prices raise production costs for sponge iron producers. Because of this, steel companies may avoid aggressive price cuts and instead pass on the higher costs to customers.

Global Aluminium Supply Concerns

The ongoing conflict in West Asia has created uncertainty in the global aluminium market.

The Gulf Cooperation Council region accounts for about 8–9% of global aluminium production and exports nearly 75% of its output.

However, many smelters in the region rely on raw materials transported through the Strait of Hormuz and depend heavily on natural gas for power. Disruptions to logistics, fuel supply, or shipping routes could reduce production and tighten global supply.

If the conflict continues, global aluminium prices on the London Metal Exchange could rise.

Read More: Centre Directs States to Prevent LPG Hoarding and Panic Buying Amid Supply Concerns.

Conclusion

Metal stocks declined sharply as global uncertainties, rising input costs and concerns over potential US tariffs impacted investor sentiment. The Nifty Metal Index fell more than 4%, with major companies like National Aluminium Company Limited, Hindalco Industries and Tata Steel leading the losses.

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