Metal Stocks Dhadam, Nifty Metal Index declines by 6.56% – Metal Stocks Crashed Nifty Metal Index Fell 6 56

The shares of Indian metal companies declined on Friday and the benchmark index saw the worst trading session since June last year. The concern of global economic growth after the US tariff affected the morale of investors. Hindustan Copper shares closed down 9.13 per cent on Friday. Shares of Vedanta, Hindalco Industries, Nalco and Tata Steel declined by more than 8 per cent. The Nifty Metal Index slipped by 6.56 per cent, which is the biggest decline since 4 June 2024.

Analysts have no direct impact on Indian metals on steel and aluminum. But they say that the effect of the second order can be more. According to MK Global strategists, metals will be affected the most. After that, on technology, which has more effect on the market. MK stated that metals now appear weak due to the possible impact of new capabilities joining and falling prices.

MK said that global or American recession could have a negative impact of up to 29 per cent, 34 per cent and 26 per cent on the prices of Hindalco, Vedanta and Nalco shares respectively. Similarly, its steel shares such as Tata Steel, JSW Steel, Jindal Steel and SAIL shares can have an impact of 40 per cent, 36 per cent, 35 per cent and 43 per cent respectively.

MK said that steel prices and margin usually follow global recession and expansion stages. Steel spreads can be 30–45 percent weaker on the basis of profitability in previous cycles. The decline has occurred a day after the US President imposed tariffs on all business countries, while analysts see the risk of recession and inflation in the US. JP Morgan considers the entire implementation of these policies as a major economic shock, which he has not included in his current forecasts. This shock is expected to be more due to the impact on the retaliation of countries facing a major increase in tariff rates and the morale of charges.

However, Geojit Financial maintained a neutral rating on the metal field. It said that the increase in demand is a positive progress due to re -rise in demand, rising cost of raw materials and policy changes. In addition, there are plans to implement 12 per cent security duty on some steel imports, which will provide relief to Indian companies.

First Published – April 4, 2025 | 11:02 pm IST