Nifty Metal falls 3% as investors book profit; buy the dips, say analysts

Thus far in CY26, the Nifty Metal has been the best performing sectoral index that moved up around 10 per cent, ACE Equity data shows. In comparison, the Nifty 50 index lost nearly 1 per cent

The Nifty Metal index slipped 3 per cent in trade on Friday hit a low of 11,863.65 levels. The fall, according to analysts, was triggered by the overall risk-off sentiment in the markets that saw the Nifty 50 index slip over 1 per cent in intraday deals, in line with most global peers.

 

Investors also booked profit in metal stocks, said Ajit Mishra, senior vice-president for research at Religare Broking, after a sharp run seen in the last few weeks. Global sentiment too, he said, played spoilsport as regards the metal pack.

 

“I don’t think there is anything worrying as regards the metal pack. The fall in these (metal) stocks is regular profit booking in the backdrop of the sharp rally we’ve seen in calendar year 2026 (CY26). The overall bullish trend in metal stocks has not reversed yet. Investors can buy the dip and hold. Among the lot, NMDC, Jindal Steel, JSW Steel look good. Investors can stay away from Hindustan Copper. Tata Steel can see some consolidation,” he said. 

 

 

Thus far in CY26, the Nifty Metal has been the best performing sectoral index that moved up around 10 per cent during this period, ACE Equity data shows. In comparison, the Nifty 50 index lost nearly 1 per cent. 

 

Gains in the index were mostly led by Hindustan Copper that zoomed 20 per cent during this period. The stock reached Rs 745 levels in January 2026 to hit a new high after a period of 16 years (previous high of ₹656.95 hit in January 2010).

 

Nalco, Vedanta, Tata Steel, Jindal Steel, Sail and Hindalco were some of the other gainers in CY26 that moved up to 19 per cent in CY26, ACE Equity data shows.

 

The sharp correction in the information technology (IT) stocks triggered by the artificial intelligence (AI) related developments can keep the overall market sentiment in check, believes G Chokkalingam, founder and head of research at Equinomics Research. In this backdrop, he expects the stocks that have run up sharply, like the metal pack, to also face the heat as investors turn risk averse.

 

“In my view, metal stocks have peaked out from a short-term perspective. Most counters have seen a good run in CY26 and can now see some profit booking as the overall market sentiment, too, remains volatile. Valuation-wise, too, metal stocks were not cheap. There could be one quarter of pain in these counters, which investors can use to accumulate selectively,” Chokkalingam said.