Tata Steel, JSW Steel among top Nifty losers; metal index tumbles over 4% as US-Iran war stokes fears

Tata Steel

• Tata Steel and JSW Steel drop up to 7%, among top Nifty losers
• Nifty Metal index fell over 4 percent amid West Asia tensions
• Aluminium prices rose globally despite metal stocks declining

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Metal stocks came under sharp selling pressure on Wednesday, with Tata Steel and JSW Steel emerging among the top losers on the Nifty, and the Nifty Metals index falling more than 4.3 percent. Escalating tensions in the Middle East rattled global commodity markets and risk sentiment, and immediate supply fears dominated industrial metals.

Tata Steel shares dropped nearly 7 percent to around Rs 196, making it the worst performer on the Nifty, while JSW Steel fell about 5 percent to near Rs 1,205. Hindalco Industries also traded lower, extending losses across the metal pack. The Nifty Metal index declined over 4 percent, making it the weakest sectoral index in an already weak market.

On the other hand, shares of Hindustan Zinc also tumbled more than 4.1 percent to Rs 592, as a wave of profit booking dragged silver prices down by as much as 8 percent in the previous session.

The broader sell-off in metal stocks came even as aluminium prices surged globally amid supply disruption concerns linked to the escalating Iran conflict. Aluminium on the London Metal Exchange rose after Qatar-based producer Qatalum halted production and declared force majeure on shipments following a natural gas shortage triggered by the conflict.

• Also read | Gold, silver ETFs tumble up to 7% despite bullion rebound as global correction hits domestic prices

Traders said the war has raised risks for aluminium supply chains running through the Strait of Hormuz, a key shipping route for Middle East metal producers. Countries including Bahrain, Qatar, Saudi Arabia and the UAE together account for more than 8 percent of global aluminium output, with over 5 million metric tonnes of the metal shipped through the choke point each year.

The divergence between rising aluminium prices and falling metal stocks reflects broader risk-off sentiment in equity markets. By noon, the Sensex had dropped over 1,450 points while the Nifty slipped nearly 2 percent, with more than 3,000 stocks declining across the market.

Other metal counters also traded sharply lower. Vedanta declined more than 3 percent and Hindustan Zinc fell over 4 percent, Rain Industries stock fell over 7 percent. Only a handful of midcap names such as Kirloskar Ferrous Industries and Ram Ratna Wires managed modest gains.

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