Hindustan Copper, NALCO, other stocks fall up to 4% as metals decline; index down 2%

Metal stocks fall

• Nifty Metal index fell 2 percent as metal shares dropped
• Hindustan Copper led losses, falling over 4 percent
• Precious metals declined amid easing geopolitical tensions

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The shares of metal companies dropped in trade on February 17, pushing the Nifty Metal index down around 2 percent. Multiple factors have led to the decline today.

The Nifty Metal index fell to 11,724.05 in the morning trading hours of Tuesday.

Hindustan Copper shares were the top loser on the index, falling more than 4 percent to trade at Rs 551.25 apiece. This came as copper prices plunged, with red metal’s futures with February expiry falling around 2 percent on MCX.

National Aluminium Company (NALCO), Steel Authority of India (SAIL) and Hindustan Zinc shares fell more than 3 percent each, while Hindalco Industries, Vedanta and Jindal Stainless (JSL) shares dropped over 2.5 percent each.

NMDC and Tata Steel shares fell around 2 percent each, while Jindal Steel and Welspun Corporation shares were down around 1 percent each.

Why are metal stocks falling today?

The fall in metal stocks came as precious metals declined. Silver futures with March expiry on the Multi Commodity Exchange of India (MCX) fell nearly 2 percent to Rs 2,35,142 per kilogram. The contracts with May expiry also fell around 2 percent.

Gold futures with April expiry meanwhile fell around 1 percent to Rs 1,53,522 per 10 grams. The contracts with June expiry also declined around 1 percent.

The fall in gold and silver prices may have been driven by easing geopolitical tensions, which in turn may have dampened the sentiment for safe-haven assets like the precious metals. US President Donald Trump said yesterday that he would be involved "indirectly" in talks between Iran and the US over the former’s nuclear programme on Tuesday in Geneva, adding he believed Tehran wanted to make a deal.

On the other hand, representatives of Ukraine and Russia will meet in Geneva for a fresh round of US-mediated peace talks.

The fall in metal stocks also comes amid uncertainties around rate cuts by the US Federal Reserve.

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