The Nifty Metal index plunged nearly 5% to an intraday low of 11,690.30, down from its previous close of 12,269.80, according to reports from The Hindu BusinessLine. This sharp decline reflects heavy selling across industrial, base and mining metal counters, with the index falling from its previous session's close. The latest market data shows Nifty 50 and BSE Sensex both down nearly 2% by midday on March 4, 2026, with Commercial Services (-17.38%) and Energy (-15.37%) sectors leading the losses, while Consumer Durables (1.33%) shows resilience. The broad-based weakness in metal stocks tracked global market weakness and a risk-off sentiment triggered by escalating geopolitical tensions in West Asia. The Sensex tumbled 1,710 points to 78,529, its lowest level since April 17 last year, while Nifty 50 declined nearly 477 points to trade at 24,389, marking the first time in nearly seven months that the index has fallen below the 24,400 mark.
Tata Steel emerged as the top laggard, plunging 8% to a low of ₹194.43 from the previous close of ₹211.01, as reported by The Economic Times. Steel Authority of India plunged 8% to a low of ₹152.40, while Vedanta Limited fell 4% to ₹701.15. Other major losers included Hindustan Copper, Hindalco Industries, SAIL, Hindustan Zinc, Adani Enterprises, Jindal Steel, NMDC, APL Apollo Tubes, Welspun Corp, Jindal Stainless and Lloyds Metals And Energy, which declined between 2% and 4%. National Aluminium Company was the only resilient stock, rising over 2% to ₹371.80. The latest market data shows DIC India facing tax adjustments with a draft order for ₹3.84 crore upward adjustment for FY 2022-23, while Vedanta released a positive business update highlighting green certifications across 4 sites and emerging as the preferred bidder for the Karnapodikonda bauxite block in Odisha.
According to The Economic Times, the metal rout was driven by escalating Iran-Israel tensions, soaring crude prices, heavy FII selling and economic slowdown fears that weighed on sentiment. The Iran-Israel war is already in its fifth day with no signs of things settling down, as both Iran and the US have ruled out any negotiations for now. Analysts attributed the decline to a strengthening US dollar, correction in global metal prices and concerns over potential demand disruption if geopolitical tensions persist. Antu Eapen Thomas, Research Analyst at Geojit Investments, noted that the sector's weakness stems from stretched valuations and heightened geopolitical risks, particularly tensions in the Middle East and the Strait of Hormuz situation. He expects continued volatility as declining global base metal prices, rising coal and logistics costs, and concerns over demand for critical metals such as copper amid global uncertainties are likely to keep margins under pressure. The broader market decline is attributed to escalating geopolitical tensions, foreign fund outflows, and profit booking after recent gains, with investors adopting a cautious stance amid global uncertainties.
As reported by The Hindu BusinessLine, Aakash Shah, Technical Research Analyst at Choice Equity Broking, sees 11,650 as a crucial near-term support level, with a sustained break potentially opening the door to further downside towards the 11,200 zone. Kunal Kamble, Senior Technical Research Analyst at Bonanza Portfolio, noted that the Nifty Metal index has broken a crucial support zone of 11,850–11,900, signalling short-term weakness after a failed corrective bounce. Until the index decisively reclaims higher levels, the technical structure remains neutral to corrective, with momentum indicators turning bearish and risk of further downside towards 11,400–11,300 and potentially 11,000. The broader market technicals show Nifty 50 trading at 24,389.00, down 1.92% from the previous close of 24,865.70, while BSE Sensex at 78,795.30, down 1.80% from 80,238.85, indicating widespread selling pressure across all major indices.
