Metal Stocks Crash as Dollar Surge Hits Market Hard

On February 3, 2025, shares of Vedanta, NALCO, and NMDC dropped by 6%. This was due to a spike in the US dollar index, which rose above 1%, reaching around 110. US President Donald Trump’s tariffs on China, Mexico, and Canada sparked fears of a trade war, further pressuring the Indian rupee.

The rising dollar index negatively impacted Indian metal companies by reducing their export competitiveness and increasing input costs. Base metals prices on the London Metal Exchange (LME) also fell, worsening the situation for metal companies.

The Nifty Metal index, which tracks metal stocks, fell by over 3%. Other metal companies, including Tata Steel, Jindal Stainless, Hind Copper, Hindalco, and SAIL, also saw declines of 3% to 5%.

Analysts warn that if trade tensions escalate, the financial outlook for Indian metal companies could worsen.