A brutal sell-off gripped India’s metal stocks Wednesday after silver and copper prices nosedived globally, triggering losses of up to 6.35 percent across the board. The downturn erased over ₹15,000 crore in market value, underscoring the sector’s vulnerability to commodity swings.
Hindalco bore the brunt, crashing 6.35 percent to ₹650, followed closely by Vedanta at 5.8 percent lower. The Nifty Metal index mirrored the pain, closing 4.2 percent in the red and marking its worst single-day drop in three months.
What sparked the rout? Copper prices on the London Metal Exchange fell 2.8 percent to $9,450 per tonne, pressured by dismal factory activity readings from China. Silver, meanwhile, lost 3.2 percent amid profit-booking after a multi-week uptrend.
Experts dissect the broader picture. ‘Industrial metals are caught in a demand-supply mismatch,’ noted a commodities analyst at a leading brokerage. ‘China’s stimulus measures have disappointed so far, while US Fed signals point to fewer rate cuts ahead.’
Inventory data exacerbated fears. Shanghai copper stocks hit multi-year highs, and COMEX silver inventories climbed steadily. These developments crushed speculative longs, amplifying the price drop.
The impact rippled beyond pure-play miners. Adani Enterprises, with its copper exposure, fell 3.5 percent, while steelmakers like SAIL dropped 4.1 percent on correlated weakness.
Looking ahead, traders are monitoring key levels. Support for Hindalco lies at ₹640, with resistance at ₹680. Broader sentiment hinges on tonight’s US jobless claims data and China’s PMI release Friday.
Despite the gloom, some bargain hunters stepped in during late trade. ‘Quality names like Hindalco offer value at these levels,’ said a fund manager. ‘But patience is key amid ongoing macro uncertainties.’
As markets digest the shock, the episode serves as a reminder of metals’ high-beta nature in volatile times.
