Shares of major aluminium producers fell sharply on Wednesday after global aluminium prices declined following reports of a US-Iran peace agreement. Vedanta, Hindalco and NALCO dropped up to 5–6% as investors reacted to expectations of improved metal supplies and lower geopolitical risks.
The proposed deal is expected to reduce tensions in the Middle East and could eventually ease concerns over energy and raw material disruptions, factors that had supported aluminium prices in recent months. Analysts said weaker aluminium prices may impact profitability for producers, prompting selling pressure in metal stocks despite broader market strength.