According to groww, India’s metal sector is a vital component of its economy, contributing approximately 2.5% to the national GDP. In FY 2024-25, iron ore production reached 182.6 million metric tonnes, marking a 3% increase. The country ranks as the second-largest aluminum producer globally, with significant growth in non-ferrous metals like copper and manganese.
On February 3, metal company shares faced pressure due to a rise in the dollar index, fueled by fears of an escalating trade war after Trump’s comments. Additionally, base metal prices dropped on the London Metal Exchange, worsening the decline for metal stocks.
The Dollar Index rose over 1 percent to around 110, putting pressure on the Indian rupee, which opened at a record low. This increase in the dollar harms Indian metal companies by reducing export competitiveness, raising input costs, and adding financial strain, especially for those with dollar-denominated debt.
Moreover, the imposition of tariffs by President Trump on China, Canada, and Mexico raised concerns of a global trade war. China, the largest importer of metals, faces a 10% tariff, while Canada and Mexico face a 25% levy. This tension could disrupt global metal demand, complicating prospects for Indian metal companies.
Here are the metal stocks that plummeted up to 6.7 percent after a spike in the dollar index;
| Company | CMP | Change (%) |
| Vedanta | 416.85 | -6.15 |
| NALCO | 189.26 | -6.01 |
| NMDC | 61.85 | -5.55 |
| SAIL | 101.64 | -5.31 |
| Hindalco Industries | 570.90 | -4.43 |
| Hindustan Copper | 230 | -4.26 |
| Jindal Stainless | 585 | -3.91 |
| APL Apollo Tubes | 1,432.90 | -3.8 |
| Tata Steel | 129.10 | -3.75 |
| Hindustan Zinc Ltd | 427.70 | -2.7 |
| Adani Enterprises | 2,248.25 | -2.4 |
| Welspun Corp | 711.95 | -2.35 |
| JSW Steel | 921.00 | -2.04 |
| Jindal Steel And Power | 785.50 | -1.46 |
| Ratnamani Metal | 2,774.40 | -0.44 |
Written by Abhishek Singh
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