 "Nifty Metal index hits record high, surges 27% in CY2025; here's why")
Nifty Metal index today
Shares of metal companies were in demand, with the Nifty Metal index hitting a new high of 10,983.20, gaining over 1 per cent on the National Stock Exchange (NSE) in Monday’s intra-day trade on expectations of strong earnings. The metal index surpassed its previous high of 10,837.45 touched on October 29, 2025.
Thus far in the calendar year 2025, the Nifty Metal index outperformed by surging 26 per cent, as compared to the 10.4 per cent rally in the Nifty 50.
At 09:55 AM; Nifty Metal index, the top gainer among sectoral indices, was up 1.5 per cent, as compared to 0.08 per cent rise in the Nifty 50. CATCH STOCK MARKET UPDATES TODAY LIVE
Hindustan Copper share soared 15 per cent to ₹545.95 on the NSE in intra-day trade amid heavy volumes. In the past three trading days, the stock has zoomed 34 per cent. Currently, the stock was up 8 per cent at ₹513.50, with a combined 52 million equity shares changing hands on the NSE and BSE.
Steel Authority of India (SAIL), Vedanta, Tata Steel, Hindustan Zinc, Jindal Steel, Lloyds Metals and Energy and Hindalco Industries were up in the range of 1 per cent to 4 per cent.
What’s driving metal shares?
Analysts at ICICI Securities remain positive on Vedanta given the robust non-ferrous prices, strategic expansion at aluminium and zinc inIndia, controlled leverage on B/S, return ratios >20 per cent, attractive dividend yield of 6 per cent. Analysts retained its BUY rating on Vedanta with SOTP based revised target price of ₹650.
The brokerage firm also maintains BUY rating on Tata Steel with SOTP-based target price of ₹210 (8.5x/4x EV/EBITDA to India/Europe business on Avg. FY27-28E). Analysts in the company update said that they are encouraged by Tata Steel’s capacity expansion plans aimed at achieving 40 MTPA capacity in India by 2030, along with its growing downstream portfolio and raw material integration. However, high capex intensity of these projects, could strain the B/S in the interim period.
Meanwhile, in the non-ferrous segment, higher prices of aluminium, zinc, and silver, boosted the operating performance of Hindalco and Vedanta in the September 2025 quarter (Q2FY26). With non-ferrous prices remaining firm, a stronger push towards value-added products and lower input costs are expected to support profitability in October to December 2025 quarter (Q3FY26), ICICI Securities said. ALSO READ | Smallcap index set for worst show in 7 years; time to cherry-pick?
The ferrous outlook is cautious at current prices, implying a sharp downside risk to earnings if the prices remain lower for longer. However, the market is pricing in a potential price hike cycle with spread improvement of ~₹3,000/t already baked into estimates for steel equities, with a view that the current downturn is transient. Analysts at Emkay Global Financial Services believe the extension of safeguard duty, coupled with the absorption of excess supply, should catapult into a durable recovery in steel prices, following the transient soft patch due to a domestic steel supply-demand surplus.
Various management of ferrous companies guided a healthy outlook for the second half (October to March) of the financial year 2025-26 (H2FY26), led by pricing recovery and demand tailwinds, while costs are anticipated to inch up, primarily due to a rise in coking coal prices. The mounting volatility in metal prices due to global trade escalation and demand-supply mismatch would be the key monitorables, Motilal Oswal Financial Services said in the Q2FY26 results review. ============================ Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.