The Nifty Metal index plunged nearly 2% on January 8, 2026, as heavy selling hit stocks like Hindustan Zinc, NALCO, Hindustan Copper, and Vedanta. The fall was triggered by profit booking after a recent rally and declining global prices of silver, copper, and gold, impacting investor sentiment.
The Nifty Metal index faced sharp declines on Thursday, reflecting weakness across major metal counters. After a strong six-day rally, profit booking combined with falling global commodity prices weighed heavily on the sector. Hindustan Zinc, NALCO, Hindustan Copper, and Vedanta were among the worst performers, dragging the index to a one-week low.
Key highlights from the announcement include
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The Nifty Metal index fell over 2% to 11,268.10, marking its steepest drop in weeks.
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Hindustan Zinc emerged as the biggest loser, sliding more than 5% to Rs 596.35, its lowest since December 19.
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NALCO and Hindustan Copper dropped 4.81% and 4.73% respectively, while Vedanta shed 3.78%.
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Silver prices on the Multi Commodity Exchange fell sharply, dropping up to Rs 4,000 per kilogram within an hour.
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Copper and gold also retreated, adding pressure on metal stocks.
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Analysts noted that the decline followed a sharp six-day rally where metal stocks had gained nearly 5%.
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Profit booking at elevated levels was a key driver of the correction, alongside weak global cues.
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Tata Steel and Jindal Steel also saw declines, though less severe compared to Hindustan Zinc and NALCO.
The correction in the Nifty Metal index highlights the volatility in commodity-linked sectors, where global price movements directly impact stock performance. While the recent rally had boosted investor confidence, the sudden reversal underscores the sensitivity of metal stocks to international market trends. Analysts suggest that the sector may stabilize once global prices find support, but near-term volatility is expected to persist.
Sources: NDTV Profit, Moneycontrol, Fortune India, MSN