Nifty Metal Slumps 2% Amid Global Commodity Price Pullback
Nifty Metal, an Indian sectoral benchmark index for metal stocks, declined by 2% on Friday due to a global commodity price pullback. The index touched its intraday low of 12,812.90 points, down from the previous close of 13,033.75 points.
The decline was led by metal and mining stocks such as National Aluminium, Hindustan Copper, Hindalco, NMDC, Tata Steel, and others. These companies saw their share prices drop due to a decrease in global metal prices, which impacted their revenue growth.
According to Investing.com data, aluminium prices declined 0.6% to $3,222.50 per 25 tonnes, while copper prices dropped 0.8% to $6.5545 per 25,000 pounds. Zinc prices also decreased by 0.5% to $3,718 per 25 metric tonnes.
The decline in metal prices was attributed to easing supply concerns in the global market. Brazilian regulator allowed Norwegian energy and aluminium firm Norsk Hydro to self-import gas and have terminal access, which boosted its production capacity. This move led to a drop in aluminium prices.