Nifty Metal Index Jumps 15% in a Month: Why Hindalco and Nalco Are Rallying

The Nifty Metal index touched a fresh peak of 11,652.70, rising 1.4% in intraday trade on January 6, even as the broader market remained weak. The index has gained around 15% in the past one month, far outperforming the Nifty 50.

Strong Rally in Metal Stocks

Several metal stocks saw sharp gains. Nalco jumped 6% to a new high of ₹350.35, while Hindalco rose nearly 3% to hit ₹970.80. Other stocks such as Hindustan Zinc, Vedanta, Tata Steel, Jindal Steel and Hindustan Copper gained between 1% and 3%.

Over the last month, Hindustan Zinc surged 32%, Nalco climbed 30%, Vedanta gained 22%, Hindalco rose 17%, and SAIL advanced 15%.

What Is Driving the Metal Rally?

Global metal prices are a key reason behind the rally. Aluminium prices on the London Metal Exchange (LME) crossed $3,000 per tonne, a 3-year high. Copper prices touched around $13,000 per tonne, while silver rose over 4% to about $76 per ounce.

Demand from New-Age Sectors

Demand from electric vehicles, renewable energy projects and AI data centres has boosted metal consumption. At the same time, global supply disruptions and geopolitical tensions have supported higher prices, which is positive for non-ferrous metal companies.

Company-Specific Triggers

Hindustan Copper is expected to benefit as it is India’s only copper miner. Vedanta remains a preferred pick due to higher aluminium capacity, strong returns and an attractive dividend yield.

SAIL reported strong December 2025 sales, with volumes up 37% year-on-year. This is likely to support its Q3FY26 earnings despite weak steel prices.

Read More: Silver ETFs 2025 Recap: Multiple Funds Deliver Over 100% Returns; UTI Silver ETF, SBI Silver ETF FoF and More!

Hindalco’s Growth Advantage

Hindalco has gained 10% in just 3 sessions. The government’s Electronics Component Manufacturing Scheme (ECMS) supports domestic aluminium extrusion manufacturing. Hindalco is well placed due to its downstream aluminium portfolio and its new Silvassa plant. Its tie-up with Apple and ₹500 crore investment offer strong long-term demand visibility.

Conclusion

The sharp rise in global metal prices, strong demand from emerging sectors and company-specific growth drivers have pushed the Nifty Metal index to new highs. If these trends continue, metal stocks may remain in focus in the near term.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

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