Hindalco Industries, Hindustan Copper, Jindal Stainless, and Hindustan Zinc were among the Nifty Metal constituents that came under sharp selling pressure in Friday’s session (November 21), with losses of over 2%, putting the index on track for its biggest weekly drop in four months.
The pressure in these counters comes alongside a steady rise in the US Dollar index, which has held above the 100 mark, and is set to gain nearly 1% for the week. The rise in the greenback follows expectations that the Federal Reserve will refrain from cutting rates in December, with the mixed US jobs report doing little to change that outlook.
The strong US dollar is also weighing on base metal prices, with benchmark three-month copper on the London Metal Exchange dropping 0.39% to $10,696.5 a ton today, poised to end the week down 1.41%, while aluminium also dropped 0.73%.
A stronger dollar makes commodities transacted in the greenback more expensive for investors using other currencies.
In addition, the fall in metal stocks was also driven by the government’s decision to extend exemptions from mandatory quality control orders on select steel and stainless-steel grades, a move expected to increase imports into the country and potentially put pressure on domestic prices.
Nifty Metal set for worst week since July
Among individual stocks, Hindalco Industries emerged as the top laggard, falling 3% to ₹776 apiece. Apart from the weak market sentiment, the decline was compounded by media reports of another fire incident at Novelis’ Oswego plant.
It was followed by Hindustan Copper, Jindal Stainless, NALCO,Hindustan Zinc, Jindal Steel, and Welspun Corp, all of which slipped between 1.5% and 2%.
Other stocks, such as NMDC, JSW Steel, Tata Steel, Vedanta, and Steel Authority of India (SAIL), also traded with losses of over 1%, dragging the Nifty Metal index down 1.50% to the 10,230 level. For the week, the index is down 2.50% and is poised for its biggest weekly drop since July.
Besides, profit booking is also playing out after a sustained rise in metal stocks that pushed the Nifty Metal index up 6% in October and 10% in September. Though the index has come off sharply from recent highs, it is still up 18.30% in 2025 so far.