Stronger dollar triggers selloff in metal stocks; Hindustan Zinc and Hind Copper slip up to 3%

Metal Shares Today: Metal shares retreated on November 18 as a stronger US dollar and fading expectations of a near-term Federal Reserve rate cut put pressure on global commodity prices. The downturn pulled the Nifty Metal index lower, making it the worst performer among major sectoral gauges during the session.

Nifty Metal Index drops 1.5%

By mid-morning trade, the Nifty Metal index was down 1.5 percent at 10,325, extending the softness seen in global base metal markets. The sell-off outpaced the broader market, despite the index having gained nearly 19.5 percent so far in 2025 — more than double the Nifty 50’s rise of 9.5 percent.

Add Zee Business as a Preferred Source

Hindustan Zinc and Hindustan Copper were among the earliest and steepest decliners, slipping around 3 percent each. Shares of SAIL also dropped more than 2 percent.

Stronger Dollar pressures Copper, Aluminium

Prices of copper and aluminium, which had rallied earlier this month, continued to weaken as the dollar held firm. A stronger greenback makes commodities priced in the currency more expensive for buyers holding other currencies, dampening demand and dragging prices lower.

The dollar index hovered near 99.5 on November 18, while several Asian currencies slipped between 0.1 and 0.6 percent ahead of key US data releases.

Fed rate-cut hopes fade, hurting commodity outlook

Investor sentiment was further weighed down by dwindling expectations of a Federal Reserve rate cut in December. According to CME FedWatch data, the probability of a 25-basis-point cut on December 10 dropped to 42.9 percent from 62.4 percent a week earlier.

Higher US rates typically support a stronger dollar and make emerging-market assets less attractive.

Aluminium’s recent surge pauses

Aluminium prices, which hit a three-year high earlier this month on strong Chinese demand and tightening global supply, have eased alongside other metals. Analysts say some of the pullback reflects broader worries about US economic momentum and monetary policy.

Despite the decline, the aluminium market continues to see region-specific changes. Rio Tinto has recently imposed surcharges on metal sold into the US, where inventories are tightening amid steep import tariffs introduced under the Trump administration.