Metal stocks stayed in the spotlight on November 26 as the Nifty Metal index climbed sharply for the second straight session. The sector opened firm and held its strength through the morning, supported by renewed optimism around policy cues and industry developments.
The rally wasn’t sudden. It built up over two days, creating a noticeable shift in sentiment across the broader metals space.
Market Performance: Metal Stocks Continue to Surge
By 11 am, the Nifty Metal index had risen around 2% to 10,267, making it the top sectoral performer of the day.
With this, the index has now gained about 2.5% in two days, reversing its recent sluggish spell.
A broad set of metal counters participated in the rally, with several names moving between 2% 4% intraday.
Key Market Highlights
- Nifty Metal index: 10,267 (+2%)
- Two-day gain: ~2.5%
- Top movers (range): +1% to +4% across major stocks
The move had a clear undertone—investors positioned themselves around two major triggers.
Main News: Why Metal Stocks Are Rising
Metal stocks picked up pace after fresh commentary from the Steel Ministry and improving sentiment around an upcoming RBI policy decision. These two catalysts shaped the market mood through the morning session.
One key event set the tone.
The Steel Secretary indicated that the government is nearing a decision on safeguard duty on certain steel imports. This followed a review of recommendations from the Directorate General of Trade Remedies after a provisional duty expired earlier in November.
He confirmed that no safeguard duty is currently in place, but discussions are ongoing “in the near future.”
This update alone pushed several metal counters higher. But the momentum strengthened further with another important trigger—renewed hopes of an RBI rate cut.
RBI Rate Cut Sentiment Adds to Momentum
Investor optimism grew after recent remarks from the Reserve Bank of India Governor. He noted that macroeconomic data still support room to reduce policy rates, echoing the stance communicated in the October MPC meeting.
Important context:
- The MPC had already cut rates by 100 basis points in the first half of 2025.
- Policy rates have remained on pause since August.
The Governor reiterated that the possibility of easing remains, even though the final call rests with the committee.
Rate-sensitive sectors, especially metals, reacted positively. Lower borrowing costs can strengthen financial flows in industrial and manufacturing cycles, indirectly boosting sentiment around metals and mining.
Global Cue: Fed Rate Cut Hopes Support Market Mood
Adding another layer of support, global markets are also pricing in a potential rate cut by the US Federal Reserve.
A Fed rate cut typically:
- Reduces borrowing costs for foreign investors
- Makes emerging markets like India more attractive
- Improves capital inflows into sectors such as metals and mining
This broader macro backdrop further lifted the Nifty Metal index.
Company Details: Top Movers in Metal Stocks
The rally was widely spread across the metals pack, with several stocks rising between 1% and 4%.
Key Gainers
- One of the top movers jumped 4% to ₹1,239.00
- Multiple stocks rose 3%+ during the session.
- A few counters gained around 2%, while others added over 1%
- Some names posted marginal gains around 0.6%
Only a single stock in the segment traded slightly in the red with marginal losses, showing that the rally was almost uniformly strong across the index.
Summary: Nifty Metal Today
- The Nifty Metal index surged 2% to 10,267.
- The sector logged a 2.5% rise in two days.
- Market sentiment strengthened after discussions around the safeguard duty on steel imports.
- Hopes of an RBI rate cut and global cues from potential Fed easing further supported the rally.
- Broader metal counters gained between 1% and 4%, marking strong sector-wide participation.
The combination of industry-level developments and macroeconomic signals helped lift metal stocks, keeping the Nifty Metal index firmly in the green for the second consecutive session.
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