Battery stocks experienced significant declines on February 1, 2026, with the broader metal sector facing pressure for a third consecutive session. According to reports from Upstox, Eveready Industries India closed at ₹320.25, down by 16.8 points or 4.9% from its previous closing of ₹335.60 on the BSE. Exide Industries closed at ₹316.40, down by 4.8 points or 1.4% from its previous closing of ₹321.50, while Amara Raja Energy & Mobility closed at ₹825.10, down by 14.30 points or 1.7% from its previous closing of ₹838.40. The stocks opened at ₹335.90, ₹324.15, and ₹839.45 respectively and touched intraday highs of ₹335.90, ₹326.00, and ₹853.80, reflecting the broader market weakness.
The government has proposed to extend the basic customs duty exemption given to capital goods used for manufacturing Lithium-Ion Cells for batteries, to those used for manufacturing Lithium-Ion Cells for battery energy storage systems too. As reported by Upstox, the government also proposed to exempt basic customs duty on the import of sodium antimonate for use in the manufacture of solar glass. These policy developments are aimed at supporting the battery manufacturing sector and solar glass production industries, providing some positive policy support amid the broader market decline. The government's push toward zero-emission electric vehicles includes plans to build dedicated rare-earth corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu as part of securing critical minerals essential for high-technology manufacturing.
The broader metal sector faced significant pressure with the NIFTY Metal index falling for a third straight session and plunging as much as 10% or 1,250 points in the last three trading sessions. According to Upstox reports, SAIL's nearly 5% fall dragged down the index, while Vedanta, Jindal Steel, Hindustan Copper, NMDC, Hindalco, Lloyds Metals And Energy and Welspun Corp also fell between 0.62%-2%. The decline was driven by continued weakness in commodity prices, with gold futures for April delivery declining as much as 5.99% to an intraday low of ₹1,33,687 per 10 grams for the third consecutive day on the Multi-Commodity Exchange. Silver contracts for March expiry plunged as much as 15% to the session's low of ₹2,25,805 per kilogram, following a sharp sell-off in precious metals.
Battery companies have witnessed a sharp selloff in the past year, falling up to 24% in line with weakness in broader markets. Despite the current decline, Exide Industries and Amara Raja have capex plans worth ₹5000 crore and ₹9500 crore respectively for the next several years. However, investor sentiment remains soured primarily due to weak earnings growth across the sector, contributing to the recent stock performance decline amid the broader metal sector rout. The government has allocated ₹5,940 crore for the Production Linked Incentive (PLI) Scheme for Automobiles and Auto Components under the Ministry of Heavy Industries, double the allocation from FY26, supporting the automotive manufacturing sector's growth.
