Shares of metal companies including National Aluminium Company (NALCO), Vedanta, Hindustan Zinc, and Hindustan Copper declined up to 4% in Tuesday’s trade, tracking weakness in global commodity prices and a sharp correction in silver.
Silver slump dents metal sentiment
The key trigger behind the sell-off is the steep fall in global silver prices. Spot silver recently dropped nearly 6% to around $73 per ounce, extending its three-week losing streak. After surging above $120 per ounce in late January amid speculative buying, the metal has witnessed aggressive unwinding of leveraged positions.
Hindustan Zinc and Vedanta are directly exposed to silver through mining operations, and a sustained fall in prices can impact realisations and profitability expectations. This has weighed on investor sentiment across the metals space.
Sector-wide pressure
The weakness is not limited to silver-linked companies. Aluminium major NALCO and copper producer Hindustan Copper also came under pressure as global commodity volatility triggered risk-off sentiment in the broader metal pack.
When precious metals correct sharply, traders often reduce exposure across related mining and metal stocks, leading to broad-based declines.
Global cues and policy uncertainty
Thin liquidity in Asian markets due to holidays and uncertainty ahead of key US data — including Federal Reserve minutes and the core PCE price index — have added to volatility.
Until global metal prices stabilise, domestic metal stocks are likely to remain sensitive to international commodity movements.