Hindalco, NALCO, Hindustan Zinc, Jindal Steel: Metal shares crash, here are the factors
NALCO shares fell 4.60% to Rs 332.20 and Hindustan Zinc shares fell 4.36% to Rs 518.10. Jindal Steel shares also slipped 3.08% to Rs 1056.60. Hindalco shares ended 2.44% lower at Rs 952.70.
- Jun 25, 2026,
- Updated Jun 25, 2026 4:38 PM IST
Metal shares were the top losers despite a rally in the broader market on Thursday. Sentiment took a hit in the sector after domestic brokerage Incred Equities said shares of Vedanta Aluminium, National Aluminium Company and Hindalco Industries may fall between 30% to 40% from current levels. InCred also said it remains negative on aluminium-linked names as its bull case thesis for the metal is on "shaky legs". The brokerage added that the current valuations of NALCO, Vedanta Aluminium and Hindalco appear "stretched" as well.
This led to a fall in the BSE Metal index. The index crashed 556 pts to close at 40,065.
National Aluminium Company shares fell 4.60% to Rs 332.20 and Hindustan Zinc shares fell 4.36% to Rs 518.10. Jindal Steel shares also slipped 3.08% to Rs 1056.60. Hindalco shares also ended 2.44% lower at Rs 952.70. Vedanta Aluminium shares also fell 4.69% to Rs 442.65.
Nifty metal index too slumped 173 pts to 12,445.
Also, the rise in dollar index and a fall in commodity prices led to a fall in metal stocks in India. The US dollar has hit a 13-month high on rate hike expectations from the Federal Reserve this year. Metal stocks have been among the major underperforming sectors in June as the US Dollar Index continues to strengthen.
The Federal Reserve will hold its policy meeting from July 28-July 29.
The recent crash in IT stocks due to Accenture trimming its guidance led investors to heavily liquidate risk assets and flock to the safety of the US dollar and US Treasuries. This led to a rise in the value of US dollar.
Since most industrial and precious metals are traded globally in US dollars, a strengthening US Dollar Index (DXY) often weighs on metal prices.
When the dollar rises, metals become costlier for buyers using other currencies, which can dampen international demand. This typically puts downward pressure on the prices of commodities such as gold, silver, copper, and aluminium.
In case of commodities, London Metal Exchange is the price setter for the global markets. A fall in prices on the exchange leads to a downward spiral in India.
A substantial share of the output from Indian metal firms is sold in international markets. Export prices are generally linked to London Metal Exchange (LME) benchmarks, with product-specific premiums or discounts based on quality, form, and regional market conditions.
As a result, higher LME prices typically translate into stronger realisations for exporters, supporting revenue growth and potentially improving profitability if input and operating costs remain under control. On the other hand, a fall in LME prices can reduce selling prices, putting pressure on margins and earnings.
Metal shares were the top losers despite a rally in the broader market on Thursday. Sentiment took a hit in the sector after domestic brokerage Incred Equities said shares of Vedanta Aluminium, National Aluminium Company and Hindalco Industries may fall between 30% to 40% from current levels. InCred also said it remains negative on aluminium-linked names as its bull case thesis for the metal is on "shaky legs". The brokerage added that the current valuations of NALCO, Vedanta Aluminium and Hindalco appear "stretched" as well.
This led to a fall in the BSE Metal index. The index crashed 556 pts to close at 40,065.
National Aluminium Company shares fell 4.60% to Rs 332.20 and Hindustan Zinc shares fell 4.36% to Rs 518.10. Jindal Steel shares also slipped 3.08% to Rs 1056.60. Hindalco shares also ended 2.44% lower at Rs 952.70. Vedanta Aluminium shares also fell 4.69% to Rs 442.65.
Nifty metal index too slumped 173 pts to 12,445.
Also, the rise in dollar index and a fall in commodity prices led to a fall in metal stocks in India. The US dollar has hit a 13-month high on rate hike expectations from the Federal Reserve this year. Metal stocks have been among the major underperforming sectors in June as the US Dollar Index continues to strengthen.
The Federal Reserve will hold its policy meeting from July 28-July 29.
The recent crash in IT stocks due to Accenture trimming its guidance led investors to heavily liquidate risk assets and flock to the safety of the US dollar and US Treasuries. This led to a rise in the value of US dollar.
Since most industrial and precious metals are traded globally in US dollars, a strengthening US Dollar Index (DXY) often weighs on metal prices.
When the dollar rises, metals become costlier for buyers using other currencies, which can dampen international demand. This typically puts downward pressure on the prices of commodities such as gold, silver, copper, and aluminium.
In case of commodities, London Metal Exchange is the price setter for the global markets. A fall in prices on the exchange leads to a downward spiral in India.
A substantial share of the output from Indian metal firms is sold in international markets. Export prices are generally linked to London Metal Exchange (LME) benchmarks, with product-specific premiums or discounts based on quality, form, and regional market conditions.
As a result, higher LME prices typically translate into stronger realisations for exporters, supporting revenue growth and potentially improving profitability if input and operating costs remain under control. On the other hand, a fall in LME prices can reduce selling prices, putting pressure on margins and earnings.