Nalco, Vedanta, Hindalco, and 3 Other Metal Stocks Jump Over 30% From April Lows

Market Recovery in Full Swing

Metal stocks have bounced back impressively, with select stocks from the Nifty Metal index posting sharp gains since their recent April lows. Fueled by favorable global cues and a positive domestic outlook, the resurgence has injected fresh momentum into the sector.

On May 20, despite a lackluster performance in broader indices, Nifty Metal outperformed by gaining over 1%, riding on the back of recent macroeconomic triggers.

Sharp Rally in Key Metal Stocks

Over the past few weeks, six major metal stocks have registered substantial gains, showcasing a strong rebound.

Here's a breakdown of the top-performing metal stocks since April 7:

• NALCO: Up by 33%, now trading around ₹183
• Jindal Stainless: Surged 32.25%
• Hindustan Copper: Jumped 26%
• Vedanta: Rose by 22.7%
• Hindalco Industries: Gained 21.4%
• NMDC: Increased by 19.22%

These figures highlight renewed investor confidence in the metal sector, with Nalco, Vedanta, Hindalco, and three other metal stocks jumping significantly in just over a month.

Global and Domestic Factors Behind the Rally

Several key developments have contributed to the surge in metal stock prices:

Global Drivers

• US-China Trade Truce: The easing of trade tensions between the US and China has relieved global markets, especially metal stocks.
• Pause in Tariffs: The US has paused tariffs and entered trade talks with multiple partners, including a fresh deal with the UK and ongoing discussions with India.
• Weakening US Dollar: A softer dollar makes metals more reasonable for investors using other currencies, increasing demand.

China's Policy Support

• On May 20, China cut its one-year Loan Prime Rate from 3.1% to 3.0% and the five-year rate from 3.6% to 3.5%.
• This marked the first rate cut since October, aimed at reviving economic growth.
• The move is part of a broader stimulus package targeting investment and demand.

India's Domestic Tailwinds

• Expectations of strong demand in FY25, especially in manufacturing.
• Safeguard duties on steel imports remain supportive.
• Shift in global supply chains benefits India, making it an emerging hub for industrial growth.
• S&P Global projects India to become the world's third-largest economy by FY31.

Company Details and Stock-Wise Performance

Here's a quick snapshot of the six stocks that have led the metal rally:

The spike in Nalco, Vedanta, Hindalco, and three other metal stocks underlines the strong market interest backed by international and local developments.

Summary

The recent gains in metal stocks like Nalco, Vedanta, Hindalco, and three others signal a broader resurgence in the metals space. With global trade tensions easing, China's policy support, and India's manufacturing push, the outlook for the metal sector remains strong.

As metal prices stabilize and demand forecasts remain optimistic, investor interest will likely persist. The rally reflects confidence in the sector's near-term earnings and long-term structural growth.