The Nifty Metal index fell 1.45% to 13,029.95 on June 8, 2026, making it the worst-performing sectoral index of the session. According to Univest analysis, the primary macro driver behind this decline is strengthening US dollar, with the dollar index boosted by Federal Reserve rate hike expectations following a strong May US nonfarm payroll report of 172,000 jobs versus 85,000 forecast. Since most metals are priced in dollars globally, a stronger dollar makes the same metal more expensive for buyers holding other currencies, directly reducing global demand and pushing metal prices lower. The breadth of selling was notable, with every major Nifty Metal constituent trading in the red, led by SAIL declining 3.48% to ₹183.93, followed by National Aluminium at -3.01% to ₹383.80, NMDC at -2.41% to ₹90.66, and Jindal Stainless at -2.32% to ₹674.60.
Despite current market volatility, aluminium prices are expected to maintain strength above historical averages according to Axis Securities. Aditya Welekar, Senior Research Analyst–Metals at Axis Securities, believes aluminium prices should remain in the range of $3,000 to $2,800 per tonne over the medium term. The analyst cites supply constraints, rising production costs and strong demand fundamentals as key factors supporting prices. Aluminium prices recently climbed close to $3,800 per tonne before correcting to around $3,500 per tonne, driven by stronger-than-expected US economic data raising concerns about potential US Federal Reserve rate hikes. Axis Securities expects the global aluminium market to remain in deficit this year, with 1.2 to 2 million tonnes of deficit anticipated in the current calendar year.
Multiple brokerages have identified key stocks for today's trading session, with InterGlobe Aviation (IndiGo) emerging as the standout favorite across major financial institutions. According to reports from ET Now, analysts from Morgan Stanley, Goldman Sachs, Elara Capital, Motilal Oswal, and Emkay have all issued buy ratings on the airline, with target prices ranging from ₹5,200 to ₹6,020. The consensus reflects strong confidence in IndiGo's growth outlook and earnings visibility in the aviation sector. Despite the metal sector decline, these aviation and other sector recommendations continue to provide positive momentum for select stocks.
While near-term volatility is expected due to potential US rate hikes and seasonal factors, Axis Securities maintains a positive long-term outlook for select metal stocks. Aditya Welekar recommends a staggered approach for investors, suggesting stocks such as Vedanta, National Aluminium Company, and Vedanta Aluminium as attractive 'buy-on-dips' candidates due to aluminium's favorable structural outlook. Supply disruptions in the Middle East, which accounts for around 9% of global aluminium supply, and China's cap on smelting capacity have tightened market conditions. Higher energy costs and environmental regulations are also supporting aluminium prices, with elevated power and gas prices pushing up production costs globally.
The brokerage recommendations span multiple sectors, with aviation, telecom, infrastructure, and healthcare stocks all receiving positive coverage. As reported by ET Now, Gabriel India has been initiated with a Buy rating at ₹1,266 by Motilal Oswal, indicating fresh coverage interest. The diverse sectoral recommendations suggest broad-based optimism across key market segments, with analysts maintaining bullish views across aviation, telecom, infrastructure, and healthcare sectors for today's trading session, even as the metal sector faces significant headwinds from global factors. On steel, Axis Securities notes that domestic prices continue to enjoy support from a discount to imported Chinese steel, though after recent sharp rises, steel prices are expected to consolidate rather than move significantly higher in the near term.
