Metal stocks slump 2% as aluminium prices drop on US-Iran deal

Aluminium producers dragged the broader market lower Tuesday, with the Nifty Metal index sinking 2.16% to 12,800.35. The sell-off followed a sharp drop in aluminium prices on the London Metal Exchange after the US and Iran reached an interim agreement, easing fears of supply disruptions.

Equity benchmarks trimmed early gains but stayed positive. The Sensex traded 352 points higher at 76,616.74, and the Nifty 50 rose 76 points to 23,929.80. Earlier in the session, the Sensex had climbed 460 points and the Nifty hit 23,977.80, helped by a rally in global equities and cooling crude oil prices. Profit booking in heavyweights capped the advance.

National Aluminium fell 6%. Hindalco Industries, Vedanta Aluminium, and Jindal Steel were among the biggest losers in the sector. Gains in Vedanta Iron & Steel, Vedanta Power, and Jindal Stainless limited the downside. The metal index has lost ground for three consecutive sessions.

Realty and media stocks led sectoral gains, with both indices up more than 1%. FMCG, information technology and oil & gas shares posted modest gains. Banking, financial services and healthcare traded weak alongside metals.

Among Nifty 50 constituents, Tata Consumer Products, HCLTech, Reliance Industries, Nestlé India and NTPC were the top gainers. Hindalco, JSW Steel, Tata Steel and Tata Motors were the biggest laggards.

Market breadth was marginally positive. Of 4,227 stocks traded on the BSE, 2,072 advanced and 1,943 declined. About 100 stocks hit 52-week highs, and 52 touched 52-week lows.

Sudeep Shah, head of technical and derivatives research at SBI Securities, said frontline indices faced selling pressure near previous swing highs and remained range-bound. The Nifty has struggled to cross the 24,000 mark, with significant call writing visible at that strike ahead of the weekly expiry. Shah identified the 23,790–23,810 zone as critical support and resistance at 24,040–24,060. A break below 23,790 could pull the index toward 23,560–23,600, while a move above 24,060 may extend the rally to 24,260.

On the derivatives side, meaningful call writing was concentrated at the 24,000 and 24,100 strikes. The highest put open interest sat at the 23,900 strike, followed by 23,800. For the Sensex, Shah pegged immediate support at 76,100 and resistance at 76,900.