A strong dollar has heightened concerns about global growth, as dollar-denominated commodities such as metals and energy become more expensive for buyers using other currencies, potentially reducing demand.
The Nifty metals index fell 5% or 600 points to hit an intraday low of 11,262.45. All counters in the 15-stock index are trading in the red.
Shares of National Aluminum Company (NALCO) fell the most at 6%. Despite the fall, PSU Metals has delivered a multi-bagger rally of 106% in 1-year period. The other big losers were Jindal Steel, which fell more than 6% today and was followed by Hindalco Industries and Hindustan Zinc, both down around 6% in the afternoon.
Another multi-bagger, Indian copper, on pace for a 130% return in one year, also fell 6% in intraday trade.
Explained: Why Traders Don’t Keep Gold With Safe Haven Since Middle East War
Vedanta, Tata Steel, Steel Authority of India (SAIL), JSW Steel, Adani Enterprises, NMDC, APL Apollo Tubes, Lloyds Metals and Energy, Welspun Corp and Jindal Stainless fell between 2% and 5%.
The metal sector was the second best performing sector in 2025. The Nifty Metals index posted an annualized return of 29% over the past year, posting its best performance in four years.
Stock market expert Anuj Gupta said the dollar’s rise in the last five trading sessions had hurt sentiment for the metal. Uncertainty and sluggish infrastructure demand due to war are putting pressure on metal demand, he added. His advice to investors is to avoid taking aggressive bets and wait for things to improve.
Also Read: ONGC, Oil India shares well-performing sector with double-digit gains by 2026 Will the Iran-Israel conflict escalate further?
The rise of the greenback
The dollar index has breached the 100 mark and is now trading at a level not seen in the last four months. Today, it was at a daily high of 100.26 against a basket of six major currencies. Over the past five sessions, the greenback has appreciated 1.3%, extending it to 2% so far in 2026.
$100 crude gives Nifty bull a shock of Rs 20 lakh crore this week. Best time to panic?
Despite today’s fall, Shriram Asset Management sees a silver lining for domestic aluminum and steel producers. On a related note, it said Indian aluminum producers are benefiting from Iran-Israel tensions as global aluminum prices on the LME rise amid Qatar’s smelter shutdown. Meanwhile the impact on energy costs is indirect, it shows.
(Disclaimer: The suggestions, recommendations, views and opinions given by the experts are their own. They do not represent the views of The Economic Times.)
