Why are metal stocks falling? Lloyds Metals, SAIL, HZL, Nalco dip up to 18%

Metal stocks crash: Metal stocks bled on the first day of trading this week, Monday, April 7, 2025, as Trump tariffs, coupled with China's stimulus plans weighed on investors’ sentiment.

 

The Nifty Metal Index plunged up to 8.60 per cent, hitting a fresh 52-week low of 7,690.20, making it the top sectoral loser on Monday. The previous 52-week low of the Nifty Metal Index was 7,935.35 hit on January 13, 2025.

 

Of the 15 stocks in the Nifty Metal Index, five stocks, including Hindustan Copper, Nalco, Hindalco, JSL, and NMDC, hit fresh 52-week lows.

 

Individually, Lloyds Metals shares nosedived 18.13 per cent to hit an intraday low of Rs 1,015, leading the loser’s pack, followed by Welspun Corp, which bled 17.82 per cent to Rs 664.30.

 

Similarly, Tata Steel share price tanked 10 per cent to Rs 126.35, Hindustan Copper fell 10 per cent to a fresh 52-week low of Rs 183.82, and Nalco hit a 52-week low, down 9.32 per cent to Rs 143.

 

Other stocks, like Vedanta (down 9.57 per cent to Rs 363), SAIL (down 10 per cent to Rs 101.34), Jindal Steel (down 8.82 per cent to Rs 775.10), Hindustan Zinc (down 8.99 per cent to Rs 388.55), Hindalco (down 8.91 per cent to hit a 52-week low of Rs 546.45), JSL (tanked 9.98 per cent to hit a 52-week low of Rs 496.60), JSW Steel (down 9.99 per cent to Rs 905.20), NMDC (slipped 8.24 per cent to hit a 52-week low of Rs 59.66), and APL Apollo (slipped 7.84 per cent to Rs 1,399.95).  ALSO READ | Top Losers Today - 50% of Sensex stocks sink over 5%; Tata Motors, RIL, TCS hit 52-week lows

 

Why are metal stocks falling on Monday?

 

G Chokalingam, founder and head of research at Equinomics Research believes there are three key reasons behind the fall in the metal index. 

 

Firstly, the 54 per cent tariffs on China, imposed by Trump, have majorly impacted the metal sector, given how China controls the supply and demand of the metals. 

 

Secondly, the global economic growth slowdown, driven by deflationary pressures, which affects oil the most, followed by metals. 

 

Thirdly, China’s focus is now shifting towards dumping steel where it is cheaper to export, as it is one of the most affected countries due to the Trump tariffs.  ALSO READ | Sensex, Nifty crash on 'Black Monday' - Why stock market is falling today?

 

What do technicals suggest?

 

As per technical charts, Jigar S Patel, senior manager of equity research at Anand Rathi suggests that the Nifty Metal has breached the key support level of 8,000. On the weekly chart, it is expected to test the 200 EMA high-low band. 

 

“Going forward, support is anticipated around 7500, while resistance lies near 8000. A close above 8000 could trigger fresh buying, whereas a close below 7700 may open the door for a further decline towards 7500," Patel added.