Metal Stocks Rally: NALCO, Hind Copper, Hindustan Zinc Lead Gains

Market Performance

Metal stocks opened the week on a strong note, extending gains for the second consecutive session. The Nifty Metal index climbed nearly 1%, reaching 10,374.30 by mid-morning trade.

Investor sentiment was lifted by a combination of robust domestic manufacturing data, soaring commodity prices, and rising hopes of a US Federal Reserve rate cut.

Main News: Drivers Behind the Rally

1. Strong Manufacturing Growth

India’s industrial sector posted a sharp rise in output during Q2 FY26. Manufacturing grew 9.1% in July-September, up from 7.7% in the previous quarter and 7.6% year-on-year.

This acceleration signals stronger domestic demand, bolstering confidence in metal and mining companies.

2. Copper and Silver Prices Surge

• Copper: Global supply concerns and a weaker dollar pushed LME copper prices above $11,290 per ton, a record high. Domestic copper futures on MCX rose over 1%, reaching ₹1,048 per kilogram. This lifted Hindustan Copper shares nearly 4%, trading around ₹339.
• Silver: Industrial demand and safe-haven flows drove silver futures on MCX to a lifetime high of ₹1.79 lakh per kilogram, sending Hindustan Zinc shares up over 2% at ₹497. Hindustan Zinc is India’s largest producer of refined silver with 99.9% purity.

3. US Fed Rate Cut Hopes

Markets reacted to rising chances of a December rate cut by the US Federal Reserve. Fed officials highlighted a weakening job market, suggesting a quarter-point rate reduction could be imminent. Lower US rates reduce foreign borrowing costs, encouraging overseas investment into growth sectors like metals in India.

Other Notable Gainers

While Hindustan Copper, Hindustan Zinc, and NALCO led the rally, other metal stocks also gained:

• Vedanta: +2%
• SAIL, APL Apollo Tubes, Adani Enterprises, JSW Steel: ~1% each
• Hindalco, Tata Steel, Welspun Corporation: ~0.5% each

These movements reflect broad-based buying across the metal and mining sector.

Summary

The metal sector’s momentum is driven by a mix of domestic and global factors. Strong manufacturing growth, record copper and silver prices, and the prospect of a US Fed rate cut have fueled buying in metal stocks.

Companies like Hindustan Copper, NALCO, Hindustan Zinc, SAIL, and Tata Steel are currently in focus for investors tracking the Nifty Metal index and the broader metals market.

The ongoing rally signals renewed interest in the sector as global and domestic catalysts align, making metal stocks a key watchlist segment in early December trading.