Metal Stocks Crash Today: Tata Steel, Vedanta fall sharply — should investors buy or sell?

Metal Stocks Today: Shares of Indian metal companies came under sharp selling pressure on Wednesday as rising geopolitical tensions in West Asia triggered a broad risk-off mood across global markets, dragging the metal pack to the bottom of the sectoral performance chart.

The Nifty Metal slumped 4 per cent to an intraday low of 11,773.85, marking its steepest single-day fall in recent weeks. By 10:40 am, the index was trading at 11,777.5, down 4 per cent from its previous close of 12,269.8. In contrast, the broader Nifty50 was down 1.93 per cent at 24,385.85, highlighting the extent of underperformance in metal stocks.

Heavy selling across steel and non-ferrous stocks

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The sell-off was led by steel majors, with Tata Steel plunging 6.5 per cent to Rs 197.2 on the NSE during intraday trade. Steel Authority of India fell 6 per cent to Rs 155.15, while NMDC declined 5 per cent to Rs 77.25.

Non-ferrous metal stocks also remained under pressure. Hindustan Copper dropped 4.5 per cent to Rs 547.20, while Jindal Steel and Jindal Stainless slipped 4.5 per cent and 4.2 per cent, respectively. Other stocks such as Hindustan Zinc, JSW Steel, Vedanta, Hindalco Industries and National Aluminium fell up to 4 per cent.

Dollar surge, global risk-off weigh on metals

Market participants attributed the sharp correction to a combination of global factors, led by heightened geopolitical tensions in West Asia and a sharp rise in the US dollar.

What brokerages are saying

Analysts at JP Morgan said the Middle East conflict could have near-term implications for Indian metal and mining stocks, though they expect limited disruption to coal and steel supply chains. The brokerage sees potential near-term bullish risks for aluminium producers Vedanta and Hindalco, while maintaining a neutral stance on several stocks.

JP Morgan has maintained a Neutral rating on Coal India with a target price of Rs 397, while retaining Neutral calls on Vedanta and Hindalco with target prices of Rs 680 and Rs 875, respectively.

While concerns around prolonged conflict impacting global demand have added to nervousness, analysts believe the dominant trigger for Wednesday’s sell-off remains the surge in the dollar index and the resulting pressure on global commodity prices.