Viceroy Research’s damning report on Vedanta Resources and Trump’s 50% copper tariff plan trigger sharp selloff in metal stocks; Hindalco, Tata Steel, Vedanta among key losers.
The Nifty Metal index plunged nearly 2% on July 9, emerging as the top sectoral laggard, after a damaging short report on Vedanta Resources (VRL) by US-based Viceroy Research intensified selling pressure across the metals basket. The sharp correction was further worsened by US President Donald Trump’s 50% tariff threat on imported copper, sparking fears of cost inflation and margin pressure for Indian exporters.
Vedanta Ltd shares crashed over 8% intraday, recovering slightly to trade down 3% at ₹440, after Viceroy alleged that VRL is a “parasite holding company” with no operating assets, dependent entirely on cash flows siphoned from Vedanta Ltd. The report likened the structure to a Ponzi scheme, accusing the firm of draining Hindustan Zinc through related-party deals and unjustified fees. Hindustan Zinc shares fell 3% to ₹424.
🔹 Top Losers: Vedanta (-8% intraday), Hindustan Zinc (-3%), Hindustan Copper (-3%), Tata Steel (-2%)
🔹 Trigger Events: Viceroy’s short on VRL debt, Trump’s copper tariff threat, steel & aluminium trade exclusion
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Tariff Worries Compound Pressure on Metal Exporters
The panic deepened after Trump confirmed a 50% tariff on copper imports, likely effective by August 1, which pushed US copper futures up 12% overnight. This spooked investors in Hindustan Copper and Hindalco, both down sharply.
Meanwhile, reports that steel and aluminium won’t be exempted in the upcoming India-US mini trade deal triggered fresh declines in Tata Steel (-2%), SAIL, NALCO, and JSW Steel.
🔹 Watchlist: Vedanta, Hindustan Zinc, Hindalco, SAIL, JSW Steel, Tata Steel
🔹 Outlook: Bearish sentiment in metals may persist until tariff clarity, trade deal finalization
