Tata Steel, JSW Steel Slide As Nifty Metal Index Falls Over 4%

The Nifty Metal index dropped more than 4.3% during intraday trade on March 4, making it the worst-performing sectoral index on the National Stock Exchange (NSE), according to exchange data.

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Tata Steel fell nearly 7% to around ₹196, emerging as the top loser on the Nifty 50. JSW Steel declined about 5% to near ₹1,205. Hindalco Industries also traded lower, extending losses across the metal pack. Vedanta slipped over 3%, while Hindustan Zinc fell more than 4.1% to ₹592. Rain Industries dropped over 7%, as per NSE data.

By noon, the Sensex had fallen over 1,450 points, and the Nifty 50 was down nearly 2%, with more than 3,000 stocks trading in the red across exchanges, according to BSE data.

Aluminium Prices Rise On Supply Concerns

The sell-off in domestic metal stocks came even as aluminium prices rose in international markets. Aluminium on the London Metal Exchange gained after Qatar-based producer Qatalum halted production and declared force majeure on shipments due to a natural gas shortage linked to the ongoing conflict, according to Bloomberg.

Market participants cited concerns over supply chains running through the Strait of Hormuz, a key shipping route for Middle East producers. Countries including Bahrain, Qatar, Saudi Arabia, and the United Arab Emirates account for more than 8% of global aluminium output, with over 5 million metric tonnes shipped annually through the route, according to Bloomberg data.

Wider Commodity And Market Impact

The overall decline in metal stocks was also influenced by volatility in commodity markets. Silver had declined as much as 8% in the previous session, and its prices were under pressure, as per market data available on the day.

The movement of aluminium prices increasing and metal stocks recording losses was influenced by volatility in domestic markets due to geopolitical tensions. The decline in the metal index and losses faced by frontline stocks such as Tata Steel and JSW Steel were a result of risk sentiment globally.