A sell-off in precious metals, especially Silver, owing to strength in the US dollar and hawkish US Federal Reserve stance, triggered selling pressure in metal stocks on Thursday, say analysts.
In Tuesday's trade, metal stocks led by Vedanta tumbled up to 7 per cent. National Aluminium, Hindustan Zinc, Hindalco and Jindal Steel were the other major losers.
Aluminium remains is UBS' preferred sub-sector, that offers a mix of earnings growth (cyclical tailwinds), valuation support, and potential to deleverage.
In the past six trading days, the Nifty Metal index has underperformed the market by falling 6 per cent, as compared to 0.4 per cent decline in the Nifty 50.
Since April, the Nifty Metal index has zoomed 25 per cent, as against 7.2 per cent gain in Nifty 50.
Hindalco Managing Director Satish Pai says new smelting, recycling and exploration projects could help India eliminate refined copper import dependence within two years
Hindalco expects high double-digit growth in domestic aluminium downstream business in FY27, driven by ramp-up at its new rolling facility, Aditya FRP, and expansion into higher-value products
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The Aditya Birla Group company reported a sharp fall in quarterly profit as charges linked to fire disruptions at Novelis offset gains from higher metal prices
Hindalco share price rose nearly 4 per cent today after Novelis posted stronger Q4FY26 results and guided an earlier-than-expected Oswego restart.
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Nifty may remain rangebound in near-term; investors may prefer a calibrated strategy - staying invested while selectively booking profits in overheated stocks, says Ajit Mishra of Religare Broking.
The Nifty Metal index hit a new high of 12,816 in intra-day trade on Thursday and has bounced back 18% from its previous month low of 10,819.85 touched on March 23, 2026.
Buying in the sector came despite a setback in overall market sentiment, as tensions in West Asia resurfaced just a day after the United States and Iran agreed to a temporary two-week ceasefire
At 9:40 AM, individually, among others on the National Stock Exchange (NSE), National Aluminium Company (Nalco) jumped 6.11 per cent, followed by Hindalco up 4.3 per cent, Vedanta rose 3.66 per cent
Nifty Metal fell as much as 1.6 per cent in trade to day's low at 11,156.7. At 10:49 PM, 14 out of 15 stocks on the index traded with losses
The brokerage remains structurally positive on Hindalco, considering favourable LME, its strategic expansion aligned with a robust domestic outlook, and a strong balance sheet
Nifty Metal index: At 10:45 AM on Friday; the metal index was the top sectoral indices loser down 4.3 per cent as against 1.3 per cent decline in the Nifty 50.
Hindalco share price: Hindalco shares climbed nearly 7 per cent as aluminium prices increased due to supply disruptions in the Middle East
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