Metal stocks in India took a sharp hit today. The Nifty Metal index dropped as the US dollar grew stronger after new inflation data came out from the US. Big names like Tata Steel, SAIL, and JSW Steel all ended in the red.
So, what happened?
The US reported a 0.3% rise in consumer prices for June. That’s a lot higher than May’s 0.1% increase. This has made people think that US inflation is heating up—partly due to tariff pressure from former President Donald Trump’s tough trade moves.
As a result, the US dollar gained strength. When the dollar rises, it makes global commodities like metals more expensive for other countries. That’s bad news for metal companies in India, as higher costs and lower margins become a concern.
Markets had been hoping the US Federal Reserve would cut interest rates soon. But with rising inflation, those hopes are fading. And when the Fed holds back on rate cuts, emerging markets like India feel the heat.
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This is why the Nifty Metal index was the top sectoral loser today.
Jindal Stainless Limited led the fall, down nearly 2% to ₹677. SAIL and NALCO also lost more than 1%. Heavyweights Tata Steel and JSW Steel dropped close to 1%. Other big names like Hindalco, APL Apollo, and Vedanta also slipped, though less sharply.
A few players managed to stay green. NMDC gained around 1%, while Adani Enterprises and Welspun Corp also traded positive.
Meanwhile, the Indian rupee opened 18 paise lower against the dollar. A strong dollar weakens the rupee and hits import-heavy sectors—again, bad for metal companies that rely on global trade.
Morgan Stanley called this “tariff pressure” in its market update and said the Fed may wait longer before taking any steps. ANZ Bank echoed that, pointing to trade uncertainty and a longer timeline before any policy rate change.
Metal stocks are feeling the weight of global politics. Rising inflation in the US, strong dollar, tariff concerns, and delayed Fed action—all of it’s playing out in real-time on our charts.
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