Metal Stocks Plunge on Gold, Silver Sell-Off Pressure

Metal equities in India have recently been under severe pressure, owing to dramatic drops in world gold and silver prices, profit-taking, and market instability. This selling wave, which began in late January 2026, has spread throughout the Nifty Metal index and important equities such as NALCO and Hindustan Copper.

Recent Metals Sell-Off

Gold prices fell by over $500 per ounce to roughly $5,100 after reaching record highs, while silver fell more than 11.9% in a single session as its lower market size exacerbated the selling pressure. This volatility was prompted by profit-taking after advances fueled by geopolitical tensions, as well as falls in US AI and tech equities, which changed market sentiment. Indian silver ETFs plummeted even more dramatically, with some losing up to 20% as premiums vanished amid global easing.

Impact on Indian Metal Stocks

The Nifty Metal index plummeted 5% on January 30, 2026, its greatest intraday drop since April 2025, with NALCO and Hindustan Copper leading losses. Earlier in January, similar crashes prompted the index to decline 3.4% on January 8, owing to global commodity drags, profit-taking, and a stronger dollar, which increased import costs for metals like copper and zinc. Hindustan Zinc (down 6.23%), Jindal Stainless (5.75%), and Tata Steel were also hammered hard, reflecting broader sector weakness.

Key Drivers and Outlook

A hawkish US Fed posture and lower rate-cut forecasts earlier fuelled risk-off swings, affecting both precious and base metals. For Indian investors, this has a direct impact on export-oriented enterprises, with MCX silver going below Rs 3.7 lakh/kg and gold approaching Rs 1.35 lakh/10g, adding local pressure. Analysts recommend buying on dips if support levels hold (gold > Rs 1.64 lakh), but volatility is expected to linger until 2026 due to India's projected reduction in gold demand.