Nifty Metal index soars 15% in 1 mth; what's driving Hindalco, Nalco today?

In the past one month, the stock price of Hindustan Zinc, Nalco, Vedanta, Hindalco Industries and SAIL have rallied between 15% and 32%.

Nifty Metal index movement today

 

Nifty Metal index hit a new high of 11,652.70, gaining 1.4 per cent on the National Stock Exchange (NSE) in Tuesday’s intra-day trade in an otherwise weak market after a strong rally in aluminium stocks.

 

National Aluminium Company (Nalco) hit a new high of ₹350.35, as the stock rallied 6 per cent on the NSE in intra-day trade. Hindalco Industries also hit a new high of ₹970.80, and surged 3 per cent in intra-day deals. Hindustan Zinc, Hindustan Copper, Vedanta, Tata Steel and Jindal Steel were up in the range of 1 per cent to 3 per cent.

 

 

At 02:44 PM; Nifty Metal index was up 0.11 per cent, as compared to the 0.38 per cent decline in the Nifty 50. 

In the past one month, the Nifty Metal index has outperformed the market by surging 15 per cent, as against 0.73 per cent rise in the benchmark index. In the past one month, Hindustan Zinc share price has zoomed by 32 per cent, followed by Nalco (30 per cent), Vedanta (22 per cent), Hindalco (17 per cent) and Steel Authority of India (SAIL) (15 per cent).

 

What’s driving Hindalco, Nalco share price today?

 

As per reports, LME aluminium prices have surged to over a three-year high of ~$3,000/tonne, while LME copper prices have climbed to multi-year highs of ~$13,000/tonne. Additionally, silver prices have risen by more than 4 per cent to ~$76/ounce.

 

The recent rally is driven by rising demand from sunrise sectors such as electric vehicles, renewable energy, and AI data centres, along with global supply-side disruptions and geo-political tension. This price uptrend is positive for our coverage universe, including Hindustan Zinc, Vedanta, and Hindalco, ICICI Securities said in a note.

 

Hindustan Copper is also well positioned to benefit, being the only copper miner in India. Overall, the brokerage firm remains positive on the non-ferrous space, with Vedanta as top pick, supported by expanded aluminium capacities, comfortable leverage, strong return ratios, and an attractive dividend yield of 6 per cent.

 

Meanwhile, as per media reports, SAIL’s sales volume for December 2025 rose sharply by 37 per cent year-on-year (YoY) to 2.1 million tonnes (MT). Cumulative sales for YTD FY26 stood at 14.7 MT, registering a 17 per cent YoY growth.

 

The strong sales performance in the month is likely to support higher revenues and improved profitability in Q3FY26. Additionally, the volume-led growth should help partially offset the impact of sharply lower domestic steel prices, which declined to a five-year low in December 2025, ICICI Securities said.

 

In the past three trading days, the stock price of Hindalco has rallied 10 per cent. The Electronics Component Manufacturing Scheme (ECMS) approval is structurally positive for Hindalco, as the scheme incentives domestic manufacturing of aluminium extrusions used in electronic applications, a segment which has higher import dependence, according to analysts. 

 

Hindalco is well positioned to benefit, given its robust downstream aluminium portfolio and the recent commissioning of its Silvassa aluminium extrusion plant, which has a capacity of 5,000 units per annum. Moreover, the company has already tied up with Apple for the aluminium extrusion plant with an investment of ₹500 crore, providing strong demand visibility. With incentives improving project economics and a marquee customer already in place, this development strengthens Hindalco’s value-added aluminium portfolio and supports long term margin stability, the brokerage firm said.  Meanwhile, according to Reuters report, the Competition Commission of India (CCI) has found market leaders Tata Steel, JSW Steel, state-run SAIL and 25 other firms breached antitrust law by colluding on steel selling prices, a confidential document shows, putting the companies and their executives at risk of hefty fines. CLICK HERE FOR FULL REPORT       ==================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.