Heavyweights including Hindustan Zinc, Hindustan Copper, Vedanta, and NALCO led the losses, as the Nifty Metal index emerged as the top sectoral laggard. Reports attributed the selling to profit booking following a rally that had pushed many stocks to multi-year or record highs, leaving valuations stretched.
Commodities cool after recent highs
The downturn in metals shares mirrors weakness in commodity markets. On the Multi Commodity Exchange of India, silver futures for March delivery dropped nearly 1% to Rs 2,48,252 per kg, after snapping a four-day rally that saw prices peak at Rs 2,51,720 on Wednesday. Copper futures fell 0.56% to Rs 1,300.45, while spot copper traded slightly higher at $586.90 per tonne.Overseas, London Metal Exchange metals pared gains from the previous weeks. Nickel settled 3.4% lower at $17,895 a ton, Copper lost 2.6% to $12,899.50, Aluminium fell 1.29%, and Lead declined as much as 0.79%. A flood of investment in China’s domestic metals markets that had driven prices to record highs, experts had noted.
NALCO share price: From record high to profit booking
NALCO shares had surged 14% over the past four sessions, hitting a 52-week high of Rs 357.50 on Wednesday, supported by rising aluminium prices and strong earnings. London Metal Exchange aluminium breached $3,000 per tonne, reflecting tight global supply amid production caps in China and Europe.
Brijendra Pratak Singh, NALCO’s managing director, had said last month, “The demands are increasing from the EV sector, construction sector, power sector, and now huge data centres are coming.” The company’s September-quarter net profit rose 36.7% year-on-year to Rs 1,430 crore, while revenue increased 31.5% to Rs 4,292 crore, reinforcing investor optimism before Thursday’s pullback.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
