Towing metal supplies | Photo credit: koto_feja
The Nifty Metal index fell nearly 5 percent to an intraday low of 11,690.30, lower than the previous close of 12,269.80, due to heavy selling at industrial, base and mining metal counters.
Nifty Metal plunges almost 5% on global risk sentiment
Tata Steel, SAIL, NMDC slide 5–8%; heavy sell on the whole package
National Aluminum remains the only resilient stock
Analysts see a technical correction, with 11,650 as the main support point
Shares of Tata Steel, Steel Authority of India, Hindustan Copper, Jindal Steel and Power and NMDC were among the top laggards, falling between 5 and 7 percent during the session.
Heavyweight Tata Steel fell 7.6 per cent to a low of ₹194.80 from the previous close of ₹211.01. Steel Authority of India fell 8 per cent to a low of ₹152.40. NMDC fell over 5 percent to ₹76.75.
National Aluminum Company is the only resilient stock in the index pack, rising just over 2 percent to ₹371.80 in early trade.
Analysts attributed the decline to a strengthening US dollar, a correction in global metals prices and concerns about possible demand disruption if geopolitical tensions persist. The recent decline in commodities such as copper and precious metals has further dampened sentiment in the sector.
Antu Eapen Thomas, research analyst at Geojit Investments, attributed the sector’s weakness to rising valuations and heightened geopolitical risks, particularly tensions in the Middle East and the situation in the Strait of Hormuz.
He noted that falling global base metal prices, rising coal and logistics costs and concerns about demand for critical metals such as copper amid global uncertainties are likely to keep margins under pressure. Thomas expects continued volatility in metal stocks until geopolitical conditions stabilize.
Aakash Shah, technical research analyst at Choice Equity Broking, said the sector’s sharp underperformance reflects previous patterns of metal stocks correcting after strong rallies on profit booking and unfavorable macroeconomic signals.
He noted that the current decline appears to be a technical correction after a sustained uptrend in recent months rather than a structural reversal.
Technical view
According to Shah, the metal index has fallen below its short-term moving averages and touched a lower high on the daily chart, indicating weakening momentum.
He sees 11,650 as a crucial short-term support level, with a sustained break potentially opening the door to a further decline towards the 11,200 zone.
On the upside, 12,100 is expected to act as immediate resistance, while stronger resistance is placed around 12,344. Until the index definitively clears higher levels, the technical structure remains neutral to corrective, he added.
Meanwhile, Kunal Kamble, Senior Technical Research Analyst at Bonanza Portfolio, said the Nifty Metal index has broken a crucial support zone at 11,850-11,900, indicating near-term weakness after a failed corrective rebound. With momentum indicators turning bearish, he sees the risk of a further decline towards 11,400-11,300 and possibly 11,000 if the selling continues.
The previous support band of 11,850–12,000 is now likely to act as resistance, and only a strong move above this level could ease immediate bearish pressure, he added.
Published on March 4, 2026
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