Nifty Metal slides 5% as gold, silver prices cool; Vedanta, Hindalco, NMDC tumble up to 8%
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Metal stocks came under heavy selling pressure on Friday, with the Nifty Metal index sliding as much as 5% as investors booked profits after a strong recent rally and global commodity prices corrected amid fresh uncertainty over US monetary policy.
The Nifty Metal index fell 5% to an intraday low of 11,852.75, with broad-based selling across steel, aluminium and mining stocks. Despite the sharp correction, the index has gained over 15% in the past 30 days and is up 53% over the last one year, underscoring the scale of recent profit booking.
Among heavyweight stocks, Vedanta shares dropped nearly 8%, even after the company reported a robust 60% year-on-year jump in net profit to ₹7,807 crore for Q3 FY26, aided by a 19% rise in revenue to ₹45,899 crore.
Selling pressure also weighed on group and peer stocks. Hindustan Zinc, Vedanta’s subsidiary and India’s largest silver producer, declined about 7%. Hindalco Industries, the world’s largest aluminium company, and NMDC , the state-owned iron ore miner, fell around 6% each.
Steelmakers were not spared. SAIL slid nearly 5%, while Tata Steel, Jindal Steel and Lloyds Metals and Energy shed over 4%. JSW Steel and Jindal Stainless ended the session more than 3% lower.
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Why metal prices are down today
The decline in metal stocks mirrored weakness in global commodity markets, which witnessed sharp corrections following a rebound in the US dollar and heavy profit-taking after metals hit record highs. Sentiment was further dampened by speculation that US President Donald Trump could nominate a more hawkish Federal Reserve Chair, fuelling concerns over a tighter monetary policy outlook.
Earlier this week, the US Federal Reserve kept policy rates unchanged at 3.50%–3.75%, broadly in line with market expectations, resulting in a muted reaction across global markets. As per the Fed’s projections, only a 25-basis-point rate cut is expected in 2026, subject to incoming economic data.
Gold, silver retreat
In the commodities space, Comex gold snapped its seven-day winning streak, settling more than 0.6% lower below the $5,400 level on Thursday after touching a record high of $5,598, according to Axis Securities. Gold prices had plunged as much as 5.7% intraday, the steepest single-day fall since October 21, before trimming losses as a firmer dollar prompted profit booking.
Silver prices also cooled, ending nearly 1% lower below $116 on January 29 after hitting a lifetime high of $121.6. Axis Securities noted that despite the correction, the near-term outlook for silver remains positive, supported by persistent geopolitical tensions.
In contrast, Comex copper bucked the broader trend, surging over 4% to a fresh lifetime high of around $6.6. The rally was driven by Trump’s tariff threats against other nations, an apparent tolerance for a weaker dollar, and strong structural demand. According to the brokerage, copper prices continue to be supported by tight global supplies and robust industrial demand, particularly from the renewable energy transition and artificial intelligence-led infrastructure expansion.
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