Nifty Metal index falls 1.5% as policy extension stokes steel import concerns; Hindalco hit by Novelis plant fire

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26 Aug, 2025 12:21

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The Nifty Metal index fell 1.4 percent on Friday after the government extended exemptions from mandatory quality control orders for select steel and stainless-steel grades, a move that could allow more imports to flow into the country and pressure domestic prices. All constituents of the index, barring Adani Enterprises, traded lower in early deals, with Hindalco leading the losses.

Hindalco was the top loser on benchmark Nifty 50 index as well, down over 2 percent to Rs 783.45, weighed down by a fire at its Novelis aluminium plant in Oswego, New York, on November 21. Novelis contributes roughly 60 percent of Hindalco’s revenue and had already booked a $21 million charge in the July-September quarter due to an earlier fire incident. The Oswego facility supplies aluminium for Ford’s F-150 truck line.

Among other major metal stocks, Tata Steel fell 1.3 percent to Rs 170.15, while JSW Steel declined 1.2 percent to Rs 1,155.70. Both the stocks were among the top 3 Nifty losers, after Hindalco.

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Further, the US monetary policy rate cut hopes are fading ahead of the next FOMC meeting scheduled for December 9-10, stoking stronger dollar concerns, weighing on metal stocks.

By 10:25 IST, the Sensex was down 0.5 percent at 85,238, while the Nifty slipped to 26,071, with metal stocks acting as the biggest drags on the benchmark.

Hindalco is rated “hold” on average by 28 analysts, with a median target price of Rs 839, according to LSEG data citied by Reuters. The stock remains up about 30 percent year-to-date.

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