Nifty Metal index rallies 3%; Vedanta, Lloyds, Nalco, SAIL rally up to 5%

Tata Steel, JSW Steel and Jindal Steel hit their respective all-time highs on the NSE today

Nifty Metal index movement today

 

Shares of metal companies, including ferrous and non-ferrous metals, were rising in trade on Wednesday with the Nifty Metal index rallying 3 per cent on the National Stock Exchange (NSE) in the intraday trade.

 

At 10:49 AM, the Nifty Metal index was ruling as the top gainer among sectoral indices, and was up 2.6 per cent, as compared to a 0.75-per cent rise in the Nifty 50.

 

Vedanta, Lloyds Metals and Energy, Steel Authority of India (SAIL), National Aluminium Company (Nalco), Tata Steel, and Hindustan Zinc were up in the range of 3 per cent to 5 per cent.

 

Tata Steel (up 3 per cent at ₹216.35), and JSW Steel (₹1,278) and Jindal Steel (₹1,258.50) up 2 per cent each, hit their respective all-time highs in the intraday trade today.

 

What's driving metal stocks higher on Wednesday?

 

Vedanta share price today rallied 5 per cent to ₹732.35 after reports said global brokerage BoFA Securities upgraded the Anil Agarwal-owned mining conglomerate to 'Buy' from 'Neutral'. The brokerage firm also raised Vedanta's share price target by 75 per cent to ₹840 from ₹480 earlier.

 

The upgrade reportedly comes on the back of BoFA's bullish view on aluminium, supportive silver prices, and a healthy dividend yield of around 6 per cent. Additionally, reports suggest that BofA thinks significant deleveraging at the parent company has minimised the risk of an increase in brand-fee rate of inter-corporate loans.  In another development, Vedanta's Committee of Directors, on Wednesday, approved the issuance of Non-Convertible Debentures (NCDs) on a private placement basis worth up to ₹3,000 crore. READ HERE 

Separately, brokerage firm Nomura has initiated coverage on Lloyds Metals and Energy with a 'Buy' rating and a target price of ₹1,600. 

The company, Nomura said, is transitioning into an integrated steel producer with a diversified revenue base, which makes the case for a 'meaningful upside'. CLICK HERE FOR REPORT

Metals & Mining sector Q3FY26 result review

For the October to December 2025 quarter (Q3FY26), non-ferrous companies posted their strongest earnings growth on higher commodity prices, stable volumes, and backward integration benefits, translating into 63bps Y-o-Y and 116bps Q-o-Q Ebitda margin expansion. 

 

"Q3FY26 results, however, reflected a divergence within the metals and mining universe, with steel and non-ferrous players demonstrating margin resilience through operational efficiencies and favorable product mix, while mining companies facing volume and cost pressures. The near-term earnings trajectory is likely to hinge on realisation trends, raw material costs, and domestic demand momentum," analysts at Systematix Institutional Equities said.

 

Looking ahead, multiple price hikes announced by steel companies, since the implementation of safeguard duty, are expected to lift spreads in Q4FY26. Further, while the near-term earnings trajectory also depends on rising coking coal costs and import flows, capacity additions, improving product mix, and continued cost optimisation position Jindal Steel and Tata Steel relatively better within the ferrous space, the brokerage firm added.

 

Among individual stocks, analysts at Systematix Equities said Hindustan Zinc trades at 9.8x/8.3x FY7E/FY28E, reflecting strong silver-led earnings visibility and margin expansion. 

 

Vedanta's (4.4x/4.3x FY7E/FY28E) growth, it added, would be supported by aluminium, zinc and silver, and power segments with ongoing deleveraging and upcoming demerger offering upside potential, while Hindalco's (5.3x/4.7x FY7E/FY28E) India operations provide earnings stability, while recovery in Novelis margins and progressions on capex remain key medium term triggers.

 

Analysts Axis Securities, too, said the aluminium demand is resilient in the packaging and electrical sectors across the US and Europe. Global aluminum supply growth remained constrained in 2025 due to persistent operational disruptions. 

 

"Looking into 2026, continued supply-side volatility is expected to offset primary smelter expansions in Asia (ex-China), while Chinese production remains structurally limited by the 45Mt capacity ceiling. Conversely, demand growth persists across North America and Europe, heightening regional deficits, while China's domestic consumption is increasingly supported by the expansion of the battery storage sector," the brokerage firm said.

   

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