Hindalco, Vedanta, Nalco hit record highs; what's driving metal stocks?

Metal stocks in demand: Analysts expect non-ferrous players to witness margin expansion in Q3 with LME prices continuing an uptrend compared to Q2.

Metal stocks today

 

Shares of metal companies continued their upward movement, with Hindalco Industries, Vedanta and National Aluminium (Nalco) registering fresh all-time highs on expectations of strong earnings.

 

Besides these three stocks, Lloyds Metals and Energy, Steel Authority of India (SAIL), Hindustan Copper, Hindustan Zinc, Welspun Corp, Jindal Steel, NMDC and Tata Steel also rallied up to 4 per cent on the National Stock Exchange (NSE) in Monday’s intra-day trade.

 

At 10:45 AM; Nifty Metal index was up 1.6 per cent , as compared to 0.6 per cent rise in the Nifty 50. The metal index hit an intra-day high of 10,703.10, and was seen inching towards its record high of 10,837.45 touched on October 29, 2025.

 

 

In the past six months, the Nifty Metal index has outperformed the market by surging 17 per cent, as against 4 per cent gain in the benchmark index.  READ STOCK MARKET UPDATES TODAY LIVE

What’s driving metal stocks?

 

Non-ferrous players are expected to witness margin expansion in the October to December 2025 quarter (Q3) with LME prices continuing an uptrend compared to September 2025 quarter (Q2). Average LME Aluminium came in at $2.8k/tn, up ~$194/tn vs. Q2. Hindustan Zinc is also expected to witness better margins on the back of higher LME zinc prices during the quarter (up ~$215/tn QoQ in Q3), analysts at JM Financial Institutional Securities said in its metals & mining sector update.

 

Near-term steel spreads are expected to remain under pressure, with recovery contingent on policy clarity on safeguard duty extension and stabilisation in global steel prices. In contrast, the non-ferrous segment remains relatively better placed, with margins expected to expand on the back of higher LME prices. Jindal Steel (lowest leverage, highest volume growth), Hindalco (non-ferrous) and Tata Steel remain top picks in the metals space, the brokerage firm said.

 

Meanwhile, India has imposed an anti-dumping duty on imports of cold-rolled non-oriented electrical steel from China for five years. The move comes after investigations revealed that cheap Chinese imports were harming domestic steel producers.

 

The duty ranges from $223.8 to $414.9 per tonne, depending on the product and exporter, according to a notification issued by the Ministry of Finance on Thursday. The order follows a detailed probe by the Directorate General of Trade Remedies (DGTR) under the Customs Tariff Act and the anti-dumping rules of 1995.  ALSO READ | IndiGo to stay market leader despite hiccups; Motilal Oswal sees 22% upside 

Meanwhile, supply disruptions coupled with strong demand from sunrise sectors such as electric vehicle & renewable energy are expected to keep metal prices elevated in 2026, which will strengthen earnings prospects for domestic non-ferrous industry. Non Ferrous capex is set to pick up pace over the next 2 years amidst ambitious expansion plans at prominent players, according to the analysts.

 

With such industry tailwinds and robust non-ferrous metal prices, analysts at ICICI Securities remain positive on the non-ferrous space. The brokerage firm top bet in this domain is Vedanta, as it will be the largest beneficiary of recent run up of non-ferrous prices owing to its recent expanded capacities, focusing on value added products and capital efficient operations.  ================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.