Mumbai: A sharp fall in global commodity prices on Friday has strongly impacted the Indian stock market. Metal stocks have remained under heavy selling pressure for the second straight day. The top five stocks of the Nifty Metal Index together have lost nearly Rs 2 lakh crore in market value in just two trading sessions.
The biggest impact has been seen on Hindustan Zinc Ltd. and its parent company Vedanta Ltd., which have led the overall fall in the metal sector.
Hindustan Copper Takes the Biggest Hit
Among all metal stocks, Hindustan Copper has been the worst performer on the Nifty Metal Index. The stock has fallen by more than 15 percent. At its lowest point during the day, the company’s market capitalisation dropped by around Rs 18,000 crore.
This sharp fall reflects strong selling pressure across copper and other base metal stocks due to weak global price trends.
Heavy Pressure on Hindustan Zinc and Vedanta
Over the last two trading sessions, Hindustan Zinc has suffered the maximum damage. On Sunday, the stock fell another 10 percent. Together, the Friday and Sunday falls have wiped out more than Rs 60,000 crore from the company’s market value.
Vedanta, which had touched a record high just last week, has also been hit badly by the global commodity sell-off. In two days, Vedanta’s market capitalisation has fallen by around Rs 54,000 crore. This comes after the company had reached a valuation of nearly Rs 3 lakh crore last week.
NALCO and Hindalco Also See Big Losses
NALCO shares dropped nearly 10 percent on Sunday. Over two days, the company has lost more than Rs 15,000 crore in market value.
Hindalco also remained among the top losers on the Nifty 50 index. After falling 6 percent on Friday, the stock stayed weak on Sunday. Although it recovered slightly from the day’s low, Hindalco had lost around Rs 25,000 crore in market capitalisation at its lowest level.
Weakness Across the Entire Metal Sector
All stocks in the Nifty Metal Index are currently trading in the red. Even the stocks not mentioned above have fallen between 1 percent and 4 percent.
The continued weakness in global commodity prices has increased concerns about short-term volatility in metal stocks. Experts believe that unless global demand improves, metal stocks may remain under pressure in the near future.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Stock markets are subject to risks and volatility. Investors should seek professional guidance before making decisions.
