Metal stocks came under selling pressure on November 18, as a stronger US dollar weighed on base metal prices and fading hopes of a US Federal Reserve rate cut dampened investor sentiment.

The Nifty Metal index fell 1.5% to 10,325, the steepest decline among 16 major sectoral indices. Base metals such as copper and aluminium extended losses due to the stronger dollar, which makes dollar-denominated commodities more expensive for investors using other currencies.

Leading the losses were Hindustan Zinc and Hindustan Copper, both down 3%, while Steel Authority of India (SAIL) shares fell over 2%.

The dollar index held steady at 99.5, while Asian currencies weakened 0.1%–0.6% as investors awaited key US economic data this week, including the September nonfarm payrolls report due Thursday.

So far in 2025, the Nifty Metal index had gained 19.5%, outperforming the benchmark index’s 9.5% growth, but the current pullback reflects caution over global monetary policy.

The likelihood of a 25-basis-point Fed rate cut on December 10 has dropped to 42.9% from 62.4% last week, according to CME FedWatch, contributing to negative sentiment. A stronger dollar from high US rates makes metals priced in USD more expensive for global buyers, reducing demand.

Other factors affecting metals included:

• Geopolitical tensions between China and Japan, which could impact commodity trade.
• Broader risk-off sentiment ahead of key US economic data.
• Concerns over US economic growth and monetary policy.

Aluminium, which surged to a three-year high in early November, has pulled back amid lingering global economic concerns, even as regional factors such as Rio Tinto imposing surcharges on US shipments support local supply constraints.

The metal sector remains sensitive to global currency movements, US interest rate policy, and geopolitical developments, with investors closely watching upcoming data and events for cues on the market direction.