Metal shares in focus; Hindustan Copper, HZL, Vedanta, SAIL rally up to 4%
Traditionally, Q4 is seasonally strong for volume push, and thus, analysts expect most steel companies to foresee very sharp reversal in margins in Q4FY26.
 "Metal shares in focus; Hindustan Copper, HZL, Vedanta, SAIL rally up to 4%")
Share prices of metal companies today
Shares of metal companies were trading firm, with the Nifty Metal index gaining 1.5 per cent at 11,265.50 on the National Stock Exchange (NSE) in Monday’s intra-day trade on expectations of healthy earnings.
Hindustan Zinc (HZL) and Hindustan Copper rallied 4 per cent, while Vedanta surged 3 per cent on the NSE in intra-day deals. Hindalco Industries, Tata Steel, Steel Authority of India (SAIL), Jindal Steel and JSW Steel were up in the range of 1 per cent to 2 per cent.
At 12:56 PM; the Nifty Metal index was the top gainer among sectoral indices, up 1.4 per cent as against 0.13 per cent rise in the Nifty 50. The metal index had hit a record high of 11,652.70 on January 6, 2026. FOLLOW STOCK MARKET UPDATES TODAY LIVE
Metals & Mining Q3FY26 preview
Seasonally, volumes start picking up from Q3 (October to December) and this quarter (Q3FY26) was no different. Most ferrous players reported high-single to lower-double-digit volume growth, partially aided by Safeguard duty implementation in the last week of December 2025.
However, flats/longs realisation was down 4 per cent/1 per cent. This, coupled with higher coking coal cost, led to sequential deterioration in operating performance. However, riding on strong macros, aluminium/zinc/lead/copper realisation was up 8 per cent/12 per cent/0 per cent/13 per cent, sequentially, and was further supported by 2 per cent INR depreciation. Thus, non-ferrous players may once again outperform ferrous players in terms of operating performance, ICICI Securities said in its metals & mining Q3FY26 preview.
Indian government had imposed final safeguard duty (12 per cent) in late December 2025, leading to a sharp uptick in steel prices. Spot HRC/rebar prices are already 7-8 per cent higher vs. Q3’s average while coking coal price is up 9 per cent. Traditionally, Q4 is seasonally strong for volume push, and thus, the brokerage firm expects most steel companies to foresee very sharp reversal in margins in Q4. January-June is peak demand season for steel in India which coupled with better prices could benefit steel players, the brokerage firm said.
Analysts at Elara Capital expect steel companies under its coverage to face headwinds in Q3FY26, led by softer steel prices and rising raw material cost, resulting in margin compression. HRC prices declined by ₹2,110/tonne QoQ, while coking coal prices in Australia rose 9 per cent, intensifying cost pressures. The adverse spread between realization and input cost is likely to weigh on profitability. ALSO READ | AGR relief boosts Vodafone Idea outlook; analysts flag spectrum dues risk
The leading domestic steel firms have announced price hikes of hot-rolled coils and cold-rolled coils (HRC & CRC) in the range of ₹750-1,000/tonne in late December and another ₹1,000-2,000/tonne in early January. This is to support margin from rising coking coal prices and multi-year low steel prices in early December.
In addition, the impact of a 12 per cent safeguard duty on flat imports, which has widened import landed cost premium to ₹4,000–5,000/tonne over domestic trade HRC, will be key for assessing import competition and price support. Further, the trajectory of input cost, such as coking coal and iron ore relative to finished steel prices, will continue to shape margin trends, the brokerage firm said. ============================ Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.