Metal stocks slide as budget jitters hit Hindustan Copper and peers
Metal stocks slide as budget jitters hit Hindustan Copper and peers
Metal shares tumble on budget jitters and commodity rout, led by Hindustan Copper’s sharp drop and weak zinc, aluminum prices.
Indian metal stocks took a sharp knock on Sunday as investors fretted over budget expectations and a wider commodities rout. Hindustan Copper Ltd saw its shares plunge about 17.4%, hitting a low of Rs 566.85, marking the steepest move among metal names that day. Hindustan Zinc Ltd and National Aluminium Company Ltd also fell hard, hitting their 10% lower circuit limits at Rs 566 and Rs 346.25 respectively. Vedanta Ltd slid 10% to around Rs 614.45, while Hindalco Industries Ltd declined about 5.4% to Rs 910.50. Tata Steel Ltd also eased, closing down roughly 1.4% at Rs 190.35.
The metals complex mirrored the broad risk-off tone, with MCX Copper futures slipping around 8% in early trade, and aluminum futures also down by about 8% as copper and zinc prices softened. Gold and silver prices were under pressure as well, underscoring a risk-off environment that hit metal fundamentals and margins alike.
Market observers linked the sell-off to expectations around policy shifts in the upcoming budget, including possible changes to duties on aluminium products and related inputs. Talks of increasing basic customs duty on aluminium products to a uniform 15% from the current 2.5-10% range, along with potential tweaks on calcined pet coke, raw pet coke, aluminium fluoride and caustic soda, weighed on the sector. At the same time, some chatter suggested a possible reduction in duties on coking coal for steel producers, though outcomes remained uncertain.
Analysts from some brokerages pointed to a broader Make in India policy framework as a potential tailwind in the medium term, suggesting a reduction in import reliance could benefit players like Hindustan Copper, GMDC and Hindustan Zinc. They also noted that expectations of budget-driven investments in track modernization and metro connectivity could provide upside for steel and related sectors in the longer run. Investors were advised to watch for concrete policy signals in the Budget 2026 announcements and how they translate into costs for metal producers.
