Vedanta, Vedanta Aluminium, NALCO, other metal stocks fall up to 5% on Friday. Here's why

Metal stocks fell as soaring oil prices, rising US bond yields and a stronger dollar weighed on sentiment. Vedanta, Vedanta Aluminium, Hindustan Copper, Tata Steel and JSW Steel declined 3–5%. The US 10-year Treasury yield rose above 4.9%, its highest since 2023, as higher oil prices stoked inflation concerns and raised expectations of a potential Fed rate hike. The decline was attributed to a combination of factors, including a sharp increase in oil prices, which rose by over 10% in the past week, and rising US bond yields, which made borrowing more expensive. A stronger dollar also weighed on the sentiment, as it made imports cheaper but also hurt the competitiveness of domestic metal stocks. Several experts believe that the Fed may raise interest rates in the coming months to combat inflation, which could further impact the metal stocks. The Reserve Bank of India has also been keeping a close eye on the situation, and is expected to take measures to control inflation. Meanwhile, investors are getting nervous, with many opting to sell their metal stocks and invest in safer assets. As a result, metal stocks have become a major selling point, with many stocks losing up to 5% in value on Friday alone. The market is expecting more volatility in the coming days, with some experts predicting a potential downturn in the metal sector. The US 10-year Treasury yield is expected to remain high, with many predicting it will surpass 5% in the coming weeks.