Mumbai’s metal sector took a sharp hit today as silver and copper prices tumbled, sending shares of key players into a downward spiral. Stocks in the metals space plummeted by as much as 6.35 percent, wiping out recent gains and raising concerns among investors.
The primary trigger was a steep decline in global commodity prices. Silver futures dropped over 3 percent on international exchanges, while copper saw a similar fall amid weakening demand signals from major economies like China. Domestic markets felt the ripple effects immediately, with heavyweights like Hindalco Industries leading the losses at 6.35 percent lower.
Analysts point to a combination of factors fueling this downturn. First, fresh economic data from the US hinted at persistent inflation pressures, prompting traders to unwind bullish bets on industrial metals. Second, China’s ongoing property sector woes continue to suppress copper consumption, the metal’s largest end-use market.
Adding to the pressure, rising stockpiles at key trading hubs signaled oversupply. LME copper inventories have surged 20 percent in the past month alone, while silver’s safe-haven appeal faded as geopolitical tensions eased slightly.
Other notable decliners included Vedanta, down 5.8 percent, and Nalco, which shed 5.2 percent. Even typically resilient names like Tata Steel and JSW Steel couldn’t escape the broader sector sell-off, posting losses of around 4 percent.
Market participants remain cautious. ‘This correction was overdue after the rally earlier this year,’ said a veteran trader. ‘Expect volatility to persist until we see clearer demand recovery cues.’
As trading drew to a close, the Nifty Metal index was down 4.2 percent, underperforming the broader benchmarks. Investors are now eyeing upcoming policy announcements from global central banks for potential relief. In the meantime, selective buying opportunities may emerge for long-term players undeterred by short-term noise.