Shares of Tata Steel joined a broad retreat across metal producers as global prices of gold, silver and copper slumped. The rout followed U.S. President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve chair, a move that investors read as reinforcing a tighter monetary stance and a stronger U.S. dollar, pressuring commodities.
The sell-off was led by sharper losses elsewhere in the sector. Shares of Hindustan Copper plunged as much as 19% to Rs 554.65, while NALCO fell as much as 11.6% to Rs 340.20. Vedanta slid as much as 10% to Rs 614.45 and Hindalco Industries declined as much as 10% to Rs 866. The Nifty Metal index crashed as much as 5% to 11,218.80.
The weakness mirrored a steep correction in precious metals during a special Sunday session on the Multi Commodity Exchange, which opened for trading as the government presents the Union Budget 2026. Gold and silver futures extended their sell-off after their worst-ever crash on Friday, hit by profit-taking and a strengthening U.S. dollar. MCX Gold futures due April 2, 2026 were down Rs 9,140 or 6% to Rs 1,43,205 per 10 grams, while silver futures for March 5, 2026 delivery fell Rs 17,515 or 6% to Rs 2,74,410 per kg.
Base metals were also under pressure. Copper prices weakened overseas, with the London Metal Exchange price down 3.40% to $13,157 per metric tonne, compounding losses in copper-linked stocks. Hindustan Copper’s slide reflected the close linkage between its earnings outlook and copper price movements, with the weakness in the base metal expected to influence the stock’s near-term trajectory.
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The steep fall in precious metals came amid profit booking after the nomination of Kevin Warsh as the next U.S. Federal Reserve chief, which unsettled commodity markets as investors viewed him as a hawkish policymaker likely to prioritise inflation control and maintain tighter monetary conditions. Trump announced former Federal Reserve governor Warsh as his choice to lead the central bank, while a reading on inflation was stronger than expected.
With international markets shut, global cues will be absent in the coming sessions, keeping the focus on domestic factors. Changes in import duties announced in the Union Budget 2026 could also influence local metal prices and margins.
“Aside from the Budget, the crash in precious metal prices may bring investors back into equity,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
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