Nifty Metal hits record, ends 3-day fall; Tata Steel, Hind Copper in focus

In the Nifty Metal index, Hindustan Copper rallied as high as 6.37 per cent, while Hindustan Zinc and Tata Steel rose 4.9 per cent and 3.4 per cent, respectively

Nifty Metal index snapped a three-day decline to become the top sectoral gainer on Thursday, led by a rally in shares of Tata Steel, Hindustan Copper and Hindustan Zinc. 

 

The Nifty Metal index rose as much as 2.3 per cent to hit a record high of 10,373. The index pared gains to trade 2 per cent higher as of 12:25 PM, compared to a 0.38 per cent advance in the benchmark Nifty50 index. So far this year, the gauge for the metal stocks has risen by nearly 20 per cent. 

 

Among individual stocks, Hindustan Copper rallied as high as 6.37 per cent, while Hindustan Zinc and Tata Steel rose 4.9 per cent and 3.4 per cent, respectively. Steel Authority of India shares rose 3.8 per cent while Lloyds Metals and Energy gained 4.4 per cent on Thursday. 

 

Drivers behind metal stocks rally 

Shares of Hindustan Copper surged on Thursday following a rally in copper. Copper price, in the London Metal Exchange, touched a one-year high of $10,738. Hindustan Copper’s stock has gained over 45 per cent in the past month, driven by the renewal of the Rakha mining lease deed with the District Commissioner of Jamshedpur for an extended 20-year period.

 

Tata Steel shares rose while the company declared its second-quarter update. Tata Steel India's crude steel production in the second quarter of FY26 stood at 5.67 million tons, up 8 per cent quarter-on-quarter (Q-o-Q) and 7 per cent year-on-year (Y-o-Y), driven by the normalisation of operations following the relining of the G Blast furnace at Jamshedpur.   ALSO READ | SpiceJet takes off on D-St on new routes, expansion plan; should you board? 

The company’s deliveries for the quarter were 5.56 million tons, with domestic shipments rising 20 per cent Q-o-Q and 7 per cent Y-o-Y, supported by higher production and stable demand across market segments despite seasonal rains. For the first half of FY26, deliveries grew 3 per cent year-on-year, broadly in line with production trends.

 

Meanwhile, other metal stocks were also trading with positive sentiment, with positive second-quarter expectations. Going forward, for ferrous players, higher volumes from the ramp-up of new capacities and lower coking coal costs are expected to sustain Ebitda/ton, despite a partial correction in metal prices, ICICI Securities said last month.

 

In the non-ferrous space, despite aluminium prices declining in June 2025 quarter, Hindalco and Vedanta maintained their operating performance, supported by higher premiums from value-added product sales and lower input costs.  Looking ahead, profitability is expected to improve gradually, driven by an increased focus on expanding the VAP portfolio through new capacity additions, greater backward integration, and robust domestic demand, particularly from sunrise sectors such as EVs & renewable, the brokerage firm said.