Nifty Metal Index Falls Up to 2.5% as Commodity Prices Retreat

Overview

• All 15 constituents traded lower, led by Hindustan Zinc down about 5% with NALCO and Hindustan Copper off roughly 4–5% and Vedanta lower by around 3–4%.
• London Metal Exchange prices slid with nickel down 3.4% and copper off 2.6%, while MCX silver futures were nearly 1% lower after snapping a four-day rally.
• Shanghai-traded base metals also weakened, and MCX copper futures edged lower, reinforcing the pressure on metal producers tied to global price moves.
• Recent gains had pushed sector valuations well above historical norms, with analysts noting price-to-earnings multiples above 20–30x versus the typical 10–12x range.
• Steel names also declined, including Jindal Steel, SAIL and JSW Steel, as a firmer dollar, a busy U.S. data calendar and talk of possible U.S. sanctions policy were cited as sentiment headwinds.