Metal shares witnessed a sharp correction on January 30 as investors booked profits after a strong rally in recent weeks. The Nifty Metal index slipped close to 5%, snapping its three-day winning streak and emerging as the worst-performing sector in early trade. The broader market also opened lower, with the Sensex and Nifty declining amid weak global cues and cautious sentiment ahead of key macro developments.
Several metal stocks had significantly outperformed the broader market over the past month, prompting investors to pare positions. Stocks such as Hindustan Copper, NALCO, Vedanta, Hindustan Zinc, Tata Steel and Hindalco faced heavy selling pressure, even as some companies reported strong quarterly earnings.
Global uncertainty further weighed on sentiment, with volatility in commodity markets, a stronger US dollar and concerns over US monetary policy adding to the pressure. While near-term volatility in metal stocks may persist, policy support for mining reforms and critical minerals could offer long-term structural support to the sector.
