The Nifty Metal index remained firm on Monday even as the broader market witnessed volatility, supported by improving sector fundamentals and company-specific triggers.
The index rose 1 per cent to 11,415.80 compared with its previous close of 11,292.50. It later gave up part of the gains and stood at 11,376.60 at 11.34 am, reflecting continued buying interest in metal stocks.
Among the gainers, Hindalco Industries, JSW Steel, and Tata Steel rose 2–3 per cent. In contrast, Jindal Stainless, Hindustan Copper, Hindustan Zinc, Steel Authority of India and National Aluminium Company slipped up to 3.5 per cent.
According to Bhavik Bhagwanji Shah, Analyst – Metals & Mining at Choice Institutional Equities, the sector’s resilience is being driven by favourable demand and easing cost pressures.
“Metal stocks are witnessing relative strength despite broader market volatility, primarily due to improving sector fundamentals. Domestic steel demand remains strong, supported by government infrastructure spending, railways and construction activity, with industry estimates suggesting steel consumption could grow around 8–9 per cent in FY26.”
“Simultaneously, global steel prices have begun to stabilise, while key raw material costs such as coking coal have moderated, potentially aiding margin recovery for producers. The ongoing rally also reflects a rebound after the steep correction seen earlier, with investors selectively preferring companies that maintain strong balance sheets, captive raw material linkages and visible expansion plans,” Shah said.
Stocks in focus
Hindalco Industries has denied media reports suggesting it had suspended aluminium product sales due to the Iran conflict. In a exchange filing, the company clarified, “Hindalco has not halted operations of its aluminium extrusions business. The communication issued to aluminium extrusions customers follows a force majeure declaration by certain gas suppliers and was a routine business intimation regarding a potential supply disruption in a segment of the extrusions business.”
This segment constitutes a small portion of Hindalco’s production capacity, and the potential impact is currently limited to less than 0.1 per cent of the company’s overall operations, it added.
JSW Steel: The company announced progress in its coking coal mining venture, Minas de Revuboè (MdR), situated in the Moatize coal basin of Mozambique, as per an earlier regulatory disclosure.
Jindal Stainless: The stainless steel producer highlighted operational disruptions stemming from the ongoing Middle East crisis.
In its previous communication to exchanges, the company stated, “Due to the heavy dependence of stainless steel manufacturing on industrial gases such as propane/LPG and natural gas, several processes across our plants have been adversely impacted.”