Metal Shares Rally Up to 3% on Global, Domestic Triggers

Market Performance

Metal shares saw a positive trading session on November 13, with key stocks showing notable gains.

• Hindustan Zinc rose 3%
• Tata Steel gained 1.8%
• Vedanta Ltd climbed 2.5%
• Nifty Metal index trading 1.3% higher at 10,679 (12:12 pm)

The rise reflects a combination of global and domestic developments driving investor optimism in the sector.

Reasons Behind the Surge

US Government Reopening

The US government ended the longest shutdown in history, clearing the way for key economic data releases. Payroll and inflation reports, which had been delayed, are expected to provide clarity for the Federal Reserve’s December policy decisions. This improved visibility in the US economy has created a risk-on sentiment globally, benefiting metal shares.

Silver Prices on the Rise

COMEX December silver contracts hit a fresh record of $54.42 per ounce as traders focused on the Fed’s interest rate outlook. Hindustan Zinc, being India’s only integrated and listed silver producer, saw a corresponding 3% gain in its shares.

Vietnam Steel Duty

India imposed a five-year anti-dumping duty on certain steel products from Vietnam, aiming to protect domestic manufacturers. Vietnam accounted for 0.9 million tonnes of steel exports to India in FY25, roughly 10% of imports. This move, combined with a likely extension of the 12% provisional safeguard duty for three years, has strengthened sentiment for domestic steel producers like Tata Steel.

Domestic Market Dynamics

Tata Steel shares also gained, supported by strong Q2 profit growth and robust demand in key markets such as India and the Netherlands. Other major steelmakers like SAIL, JSW Steel, and JSPL were trading 0.75%-1.8% higher, reflecting broad-based sectoral strength.

Global Rate Cut Optimism

Expectations of a 25 basis points rate cut by the US Federal Reserve next month have also buoyed investor sentiment. A more accommodative monetary stance tends to favor metals and cyclicals, creating a supportive backdrop for the sector.

Retail Inflation at Record Low

India’s October retail inflation fell to 0.25%, the lowest in the current series since 2014. Price cuts on nearly 380 mass-consumption items under GST, along with subdued prices for vegetables, fruits, and eggs, contributed to this decline. Lower inflation provides room for potential policy easing by the Reserve Bank of India, further supporting domestic markets.

Summary

Metal shares, including Hindustan Zinc and Tata Steel, rallied on November 13, driven by global developments, domestic protective measures, rising commodity prices, and macroeconomic optimism. With both global and domestic factors aligned, the sector showcased strong resilience and investor interest.