Hindustan Zinco, Hindalco to NALCO: Why WHEY WHEY METAL Stocks in the Red Today? Analysts Decode Factors & Top Stock Ideas

Metal Stocks: Amid the sharp crash in the Indian stock market today, June 12, metal counters emerged as one of the top casualties, with the 15-constituent nifty metal index declining 1.55%. However, this Fall comes on the heels of a Nearly 4% Rally Seen in the Last One Week.

Among the 15 metal stocks in the index, 14 close in the red. Welspun Corp, APL Apollo, Tata Steel, SAIL, Vedanta and Nmdc were among the top index losers, shedding between 2-3%. Hindalco, Hindustan Zinc, Adani Enterprises and Nalco also emerged among the losers, down between 0.5% to 1.75%.

Jindal Stainless shares were the only ones to defy the weight in the metal pack and the overall broader market.

Why did metal stocks Crash Today?

Analysts larger attributed the fall to profit taking amid a lacked a lac of conclusive outcome on the us-china trade deal talks and growing tensions in the middle East.

“Metal Stocks Started Getting Into Profit-Taking Zone, Driven by the Rise in Uncertainty in the Geopolitical Situation, Headlined with Us -iraq as Well as No Clear Direction on Us-CENA Deal Talks “Frameworks” Being Reported, Concrete outcomes are missing, “Said Prashant Tapse, Senior (VP) Research at Mehta Equites.

Despite Today’s Profit Taking, The Metal Index is in an uptrend for the second month in a row. While it saw a massive fall in April amid a tit-on-tat tariff war between the world’s two largest economies, reports of a trade trauce briefers back to metal counters.

“Ongoing UncertainTies and Stalled Tariff Talks Have Kept Metal Stocks Volaitary. The US-China Trade Conflict has raised Concerns about Global Demand and Supply Chain Disrupties Pris and Stocks Negatively. Sector, which is a Major Consumer of Metals, Have Damped Hopes for a Sustained Recovery in Metal Demand, “said Vaibhav Vidwani, Research Analyst at Bonanza.

Market Dynamics Such as Profit-Taking after Previous Rallies has also LED to Selling Pressure on Indian Metal Stocks and the Nifty Metal Index, Vidwani Added.

Metal stocks to buy

Going Ahead, Tapse Expects Choppy Trading and Volativity in Metal Stocks in the Short Term, as they are likely to swing with headline news.

Technically, He Sees More Pressure in the Metal Space, Tapse Said, Adding That One Can Use Dips as Entry Points in Stocks Like JSW Steel and Tata Steel.

Meanwhile, Vidwani Prefers Hindustan Zinc AMID a Bulishness in the Silver Pries. “Hindustan Zinc is the stock we are bullish on because Hindustan Zinc Have +15% Revenue Contribution of silver, and we can expect upward movement in the near term in the area term in Silver Pries, Will Suport Revenue growth and net profitability of the company, as per the bonanza analyst.

Disclaimer: This story is for educational purposes only. The views and recommendations made Above are that of individual analysts or broking companies, and not of mint. We Advise Investors to Check With Certified Experts Before Making Any Investments Decisions.