Nifty Metal Index Tumbles Over 3%; Hindustan Zinc and National Aluminium Fall Over 5% — Here’s What You Need to Know

The sharp fall reflected broad-based weakness across the metals sector, driven largely by profit-booking after recent strong rallies and risk-off sentiment in broader markets. Most major metal and mining stocks were trading lower as investors locked in gains, after a significantly run-up in recent times.  

What stood out in the session was that all 15 constituents of the Nifty Metal index were trading in negative territory, highlighting broad-based weakness across the metals and mining pack. 

Nifty Metal Top 3 Losers: Reflecting Profit Booking & Sector Correction

Here are the major laggards within the index on the day:

1. Hindustan Zinc – Down 5.34%
   Hindustan Zinc led the decline as investors pared positions in the zinc major, which had delivered strong gains in recent months.
2. National Aluminium – Down 5.66%
   NALCO dropped sharply as traders booked profits after a solid one-month rally.
3. JSW Steel – Down 2.43%
   Even large integrated steel producers like JSW Steel were hit, reflecting a broad-based correction across steel counters amid weaker sentiment and profit-taking.

These three topped the loser list among Nifty Metal constituents, showing that both base and precious metal stocks were vulnerable to short-term selling pressure.

Why Are Metal Stocks Sliding?

Profit Booking After Strong Rally

A key driver of today’s weakness was profit-booking in stocks that had run up sharply in recent months. Several metal names saw multi-month gains, particularly Hindustan Copper and Hindustan Zinc, which rallied significantly on the back of buoyant copper and silver prices.

Investors appear to be locking in gains, especially after extended advances that have pushed some valuations higher and created technically oversold conditions on short-term charts.

Copper & Silver Prices Falling Over the Last 2 Days

Silver experienced a sharp correction on January 8, 2026, ending days of euphoric gains. Global silver prices fell to $76.16 per ounce, down $1.76 from the previous day, trimming part of its extraordinary 161% year-to-date rally. 

In India, silver prices eased slightly to ₹2,52,000 per kilogram on January 8, 2026. This pullback marks profit-taking after silver's historic surge. The recent rally in Silver was because it plays a dual role that very few assets do. On one hand, it behaves like a monetary metal—when investors turn cautious, they often rotate towards precious metals, and silver benefits alongside gold. On the other hand, it’s a core industrial input—used widely in electronics, solar, and power equipment—so demand can rise with the push towards electrification and expanding energy infrastructure. In short, silver can gain from risk-off positioning as well as real industrial consumption, and that combination is lifting prices. 

Copper tumbled sharply on January 7, falling to $5.93 per pound (down 1.45%) from the previous day, marking the largest single-day percentage decline since December 29, 2025. This decline came after copper hit an all-time high of $6.01 on January 6, 2026. The correction reflects profit-taking following a record rally driven by supply tightness in Chile and Indonesia, though copper remains up approximately 37-40% year-over-year. By January 8, copper stabilised slightly higher at $5.84 per pound, suggesting a base-building phase after the sharp selloff.

Broad Market Headwinds

The slide in metals stocks has coincided with broader market uncertainty, including pressure from foreign investor outflows and concerns around tariffs impacting trade dynamics. These macro-factors have contributed to a risk-off mood in equities, with metal stocks among the more cyclical sectors to suffer.

Moreover, metals globally have seen volatile price action recently. While copper and silver have rallied on demand expectations and supply tightness, fluctuations in global commodity prices can lead to rapid adjustments in related stocks.

Conclusion

The sharp sell-off in the Nifty Metal index on January 8, 2026, was primarily a technical correction after strong multi-month gains, amplified by profit-booking and short-term commodity volatility. With copper and silver cooling off from record highs and broader markets turning risk-averse, metal stocks faced synchronized pressure across the board. 

However, the underlying long-term demand drivers for industrial metals remain intact, suggesting that the recent dip is more of a tactical pullback than a structural trend reversal.