Metal stocks: Hindustan Copper shares were the top loser on the index, falling nearly 6% to trade at Rs 343.60 apiece
The Nifty Metal index declined over 0.7 percent to stand at 9,424, while the Nifty Realty index fell more than 0.5 percent to hover around 912, as seen at 10.20 am.
Metal, realty stocks: Weaker US dollar, no repo rate cut from RBI and poor earnings by some of the players further fuelled the downturn in the sector.
'Given the current landscape of heightened volatility and mixed technical signals, traders are advised to adopt a cautious 'sell-on-rise' strategy,' says Hardik Matalia.
Metal stocks: The rise in the US currency came after US inflation data for the month of June hinted at pressures from President Donald Trump's harsh tariffs, which in turn led to lower bets for Federal Reserve's rate cut.
Vedanta share price: The US-headquartered short seller took a short position of VRL’s debt, calling it a 'parasite holding company'.
RBI MPC meet outcome: The rally in metal stocks is in line with several rate sensitive sectors like banks and realty, as well as the overall stock market.
US Treasury Secretary Scott Bessent on May 29 said that US-China tariff talks are a 'bit stalled' and a deal will be concluded possibly after the direct involvement of Donald Trump and Xi Jinping.
Jefferies is bullish on India’s steel sector, initiating and maintaining buy calls on key names like Jindal Stainless, Tata Steel, and Coal India
India's retail inflation inched down to 3.16% in April; US consumer price index increased 0.2% last month, below expectations of a 0.3% gain
Vedanta Group Chairman Anil Agarwal had shared the group's plan to invest Rs 50,000 crore in Assam and Tripura's oil and gas sector over next 3-4 years.
Experts warned that the escalating trade conflict could severely impact global growth, further pressuring metal prices
Investors had sold off metal shares on worries over a possible US recession and the implications of a global trade war. However, reports of China considering a stimulus and the weakness in US dollar has likely helped metal stocks stage a recovery.
The initial reaction of metal stocks to Trump's 26 percent tariff was one of relief but it soon turned to despair
India runs the risk of dumping of steel products into the country after the US tariff imposition, along with concerns over the impact of tariffs on global demand.
The recommendation came after the authority observed that there has been a sudden spike in the imports of these products into India. This could have a serious impact on the domestic companies.
China has unveiled a special action plan to boost domestic spending by increasing residents' income. Additionally, uncertainties around Trump tariffs continue to persist.
APL Apollo Tubes was the top gainer on the index, rising nearly 3 percent to trade at Rs 1,414 per share. The stock has now strongly recovered after hitting a 52-week low of Rs 1,273 per share on February 17.
Metal index constituents continued to trade under selling pressure for the second straight day amid profit-taking. This comes after 5 session rise last week.
Emkay Institutional Equities sees potential earnings upgrades for the Hindalco, Vedanta and NALCO if alumina and aluminium prices stay high, boosting stock performance.
'Rising Chinese steel imports, often aided by unfair trade practices, pose a serious challenge to Indian manufacturers,' steel minister HD Kumaraswamy told Reuters
Trump’s fresh tariffs on steel and aluminum raise fears of escalating trade tensions, however, a largely muted reaction was seen across metal names as the market had already priced in the imposition of additional tariffs.
Prominent metal stocks—Tata Steel, JSW Steel, and Hindalco Industries—plunged 3-4 percent, securing a spot among the worst-performing Nifty 50 stocks. The selling pressure wasn’t limited to individual names, as the Nifty Metal index nosedived over 2 percent, emerging as the biggest sectoral loser.
Trump's initial tariffs on China, Mexico, and Canada sent the dollar index soaring. With China being the world's largest importer of metals, concerns over a potential trade war weighed on sentiment for Indian metal companies.
The broader sell-off in metal stocks also pulled the Nifty Metal index down by 2.4 percent, making it the worst-performing sector so far.