Nifty Metal tanks 10% in 2 days; Hind Zinc sinks 14%, falls below OFS price

Metal stocks slide: Share price of Hindustan Zinc, NALCO, Vedanta and Hindalco Industries were down 8% to 14% on the NSE in intra-day trade on Sunday, Budget day.

Metal shares price movement today

 

Shares of metal companies were under pressure, falling up to 17 per cent on the National Stock Exchange (NSE) in Sunday’s intra-day trade on profit booking by investors post an unprecedented rally in the month of January 2026.

 

The Nifty Metal index slipped 4.6 per cent to 11,285.65 on the NSE in intra-day trade. In the past two trading days, the index has tanked 10 per cent.

 

Among individual stocks, Hindustan Copper plunged 17 per cent to ₹572 on the NSE in Sunday’s intra-day trade. In the past two days, the stock has shed 25 per cent.

 

 

Share price of Hindustan Zinc slipped 14 per cent to ₹543.55, falling 24 per cent in the past two trading days. National Aluminium Company (₹346.95) and Vedanta (₹613.40) were down 10 per cent each and Hindalco Industries down 8 per cent at ₹888.50.

 

At 09:39 AM; the Nifty Metal index, was the top loser among sectoral indices, down 3.2 per cent, as against 0.03 per cent decline in the Nifty 50.

 

However, in the month of January 2026, the Nifty Metal index rallied 6 per cent, as compared to 3 per cent rise in the Nifty 50.  Check Stock Market LIVE Updates 

Why metal stocks under pressure in past two trading days?

 

Precious metals witnessed one of the sharpest corrections in decades on Friday, January 30, 2026, as aggressive profit-booking followed the explosive rally to record highs earlier this month. 

 

The primary trigger was the nomination of Kevin Warsh as the next US Federal Reserve Chair by President Trump. Warsh, known for his hawkish stance on inflation control and emphasis on Fed independence, prompted a rapid macro re-pricing: the US dollar strengthened, real yields rose, and leveraged positions in gold and silver viewed as overextended debasement hedges unwound swiftly. 

 

This resulted in violent liquidation, erasing billions in market value and flushing out weak hands in a classic euphoria-to-exhaustion phase rather than signaling a structural bear market reversal, said Ponmudi R, CEO of Enrich Money.  ALSO READ | Muthoot, Manappuram Finance crack up to 8% amid Gold price slide

 

Hindustan Zinc falls below OFS floor price of ₹ 685 per share

 

A sharp correction in stock price of Hindustan Zinc saw it fall below its offer for sale (OFS) floor price of ₹685 per share. The stock price of Hindustan Zinc was quoting at ₹563.65, after hitting a low of ₹543.55 on the NSE in intra-day trade.

 

The OFS of Hindustan Zinc saw a strong turnout from retail investors, with the retail portion getting subscribed 232 per cent, the BSE data shows. According to data, retail investors bid for 110.4 million shares against an offer size of 4.76 million shares, taking the retail book to more than 2.3 times subscription. The non-retail portion was subscribed 100 per cent, data shows. CLICK HERE FOR DETAILS 

 

Hindustan Zinc is an integrated mining and metal producer of zinc, lead and silver. Hindustan Zinc is India’s largest integrated producer of zinc, lead and silver. Hindustan Zinc is a subsidiary of Vedanta Limited, which holds a 61.8 per cent stake in the company, while 28 per cent is held by Government of India, as on December 31, 2025.

 

In the first nine months (April to December 2025) of the financial year 2025-2026 (9MFY26), Hindustan Zinc reported a healthy operating profitability, supported by a sharp increase in zinc London Metal Exchange (LME) prices, averaging at $2,996/tonne (July to Dec 2025) along with elevated silver prices. 

 

The profitability was further aided by a reduction in cost of production (CoP) to $980/tonne in 9MFY26 and healthy mined and refined metal production. In 9MFY26, the refined metal production remained steady at 766kt vis-a-vis 783kt in the corresponding period of the previous year. Hindustan Zinc reported an OPBITDA of ₹14,309 crore in 9MFY26, registering a year-on-year increase of 14 per cent. 

 

ICRA expects Hindustan Zinc’s cost of production to remain at ~$950-$1,050 per tonne in the near to medium term supported by lower power costs, improved metal recoveries, higher byproduct realisation and better ore grades. With zinc and silver prices remaining firm in the current fiscal, operating profitability is expected to remain strong, translating into an OPBDITA of ₹18,000-19,000 crore in FY2026.  However, Hindustan Zinc’s operations are exposed to the cyclical characteristics inherent in volatile metal prices, which cause swings in profitability and cash flows and increases the business risks.