The Nifty Metal index declined by 1.56 percent today, with key constituents such as Vedanta, JSL, Hindalco, and NMDC registering losses of up to 2 percent. This comes in contrast to its performance on 29th May, when it emerged as the top gainer among sectoral indices, driven by favourable developments from a U.S. court ruling on Trump’s tariff
Despite the weakness in the metal sector, the broader market remained relatively stable, with the Nifty 50 index posting a modest decline of just 35 points, or 0.15 percent.
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Why the Index fell today
U.S. Treasury Secretary Scott Bessent said that trade talks with China are currently not moving forward and may need a direct conversation between President Donald Trump and Chinese President Xi Jinping to make progress. In an interview with Fox News on Thursday, he mentioned the talks are “a bit stalled” and suggested that a leader-level discussion could help break a deal.
The Other reason for the Index falling can be attributed to a recent development: A U.S. appeals court has decided to temporarily keep President Donald Trump’s tariffs on foreign goods in place while a legal case about them continues. Earlier, another court had questioned the basis of those tariffs, saying the law Trump used didn’t give him unlimited power to set them. For now, the appeals court’s decision means the tariffs will stay as the legal battle goes on.
These recent developments have renewed concerns over rising costs and weakening demand in the sector, leading to a decline in metal stocks and weighing on the index.
Metal Index Performance
The index has delivered a return of 0.83 percent over the past six months, 6 percent year-to-date, and 3.5 percent over the last one year. Impressively, it has generated a strong return of 390 percent over the past five years.
On the other hand, comparing the Index to the Nifty 50 Index it has delivered a return of 2 percent over the past six months, 4 percent year-to-date, and 10 percent over the last one year. Further, it has generated a return of 159 percent over the past five years.
Written By Abhishek Das
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