Metal Stocks Extend Winning Run as China’s $167-Billion Dam Boosts Sentiment

Market Performance

Metal stocks continued their upward momentum for the third consecutive session on July 21, with broad gains seen across key counters.

• The Nifty Metal index rose nearly 1%, hovering around 9,545 during afternoon trade.
• Positive global cues, particularly from China, drove investor enthusiasm in metal counters.

Main News: China's Dam Project Lifts Indian Metal Stocks

The rally in Indian metal stocks comes amid market buzz surrounding China's mega hydropower project in Tibet, valued at $167 billion.

Key highlights:

• The hydropower dam on the Yarlung Tsangpo river was recently launched by Chinese Premier Li Qiang.
• The project is four times the size of the $37-billion Three Gorges Dam (completed in 2009).
• The move has pushed iron ore and steel prices higher globally.

The project is expected to:

• Spur demand for construction-related metals like steel and aluminium.
• Potentially curb Chinese metal dumping in global markets, benefitting Indian players.
• Trigger anti-dumping optimism for Indian metal producers.

Company-Wise Stock Movement

Jindal Stainless Steel (JSL)

• Stock rose 4%
• Traded at ₹702 per share

National Aluminium Company (NALCO)

• Gained nearly 4%
• Reached ₹195 per share

Vedanta, Hindustan Zinc, Hindustan Copper

• All posted gains of over 2%

APL Apollo Tubes

• Climbed close to 2%

Hindalco, NMDC, Adani Enterprises

• Each gained 1% or more

Steel Authority of India (SAIL), Tata Steel, Welspun Corp, Jindal Steel and Power

• All traded with marginal gains

Company in Focus: JSW Steel Share Price Movement

Contrary to the broader rally, JSW Steel shares fell nearly 1%, trading around ₹1,027 apiece.

Financial Snapshot (Q1 FY26)

• Net Profit: ₹2,209 crore (↑ 155% YoY)
• Revenue from Operations: ₹43,147 crore
  • Slight increase YoY
  • Down from ₹44,341 crore in Q4 FY25

JSW Steel commented on industry challenges:

• Finished steel imports have declined
• Exports have also reduced
• India remains a net importer
• Low-cost Chinese imports remain a concern
• Global tariff changes and trade flow uncertainties are influencing trends
• Recent Chinese steel production cuts haven't offset rising exports

Company Details: India’s Stand on Metal Dumping

Indian manufacturers have long voiced the need for anti-dumping duties to safeguard the domestic industry from low-cost Chinese metal imports.

Now, with China's focus shifting inward due to infrastructure projects like the mega dam, there's optimism that Indian metal companies may face less pressure from cheap imports, especially if China's internal demand surges.

Summary

The announcement of China's $167-billion hydropower project has created a bullish wave across Indian metal stocks. Companies like Jindal Stainless Steel, NALCO, Vedanta, and APL Apollo Tubes recorded solid gains, helping the Nifty Metal index inch closer to the 9,550 mark.

Despite JSW Steel’s strong Q1 profit jump, its stock declined slightly, reflecting broader concerns around imports and global trade uncertainties.

As China ramps up domestic metal usage for its massive infrastructure drive, Indian players could benefit, especially if metal prices remain elevated and dumping concerns diminish.