Shares of National Aluminium Company Ltd (NALCO) and Hindustan Copper fell around 5% for the second consecutive session on Thursday, as the metals sector faced broad-based selling pressure. According to reports from Samco, the Nifty Metal index dropped nearly 3% to 11,215, marking its sharpest single-day decline since April 2025. The correction came after a strong six-day rally during which metal stocks had gained almost 5%, with investors now booking profits at elevated levels.
The selling pressure extended across the entire metals complex, with major players witnessing significant declines. As reported by Samco, Jindal Stainless Steel, Jindal Steel & Power, Vedanta, and Hindustan Copper saw drops of around 4%, while Hindalco Industries, NMDC, SAIL, JSW Steel, and Tata Steel fell more than 2%. The broad-based decline affected all 15 constituents of the Nifty Metal index as investors took profits following the recent rally that had pushed many stocks to multi-year or record highs.
The downturn in metals shares mirrors accelerating weakness in both domestic and global commodity markets. According to Samco, silver futures on MCX declined up to ₹4,000 per kg, while gold, aluminium, and copper futures fell around 1% each. On the London Metal Exchange, metals faced continued pressure with nickel settling 3.4% lower at $17,895 a ton and copper losing 2.6% to $12,899.50. Aluminium fell 1.29% while lead declined 0.79%, reflecting the global nature of the commodity selloff.
Despite the market correction, metal companies continue to demonstrate operational strength. According to Samco, Tata Steel reported record production in India for the December quarter with crude steel output of 6.34 million tonnes, representing year-on-year growth of over 11% from 5.69 million tonnes. The growth was driven by higher output at Jamshedpur and Kalinganagar plants. Other major players in the sector continue to operate with stable production and supply chain operations, supporting medium-term prospects despite short-term price corrections.
NALCO's recent volatility comes after the stock had surged over four sessions, hitting a 52-week high of ₹357.50 before the current correction began. The company's September-quarter net profit had risen 36.7% year-on-year to ₹1,430 crore, while revenue increased 31.5% to ₹4,292 crore. According to ETMarkets.com, Managing director Brijendra Pratak Singh had noted increasing demands from the EV sector, construction sector, power sector, and data centres, indicating strong underlying fundamentals despite the current market correction.
