Metal and aluminium stocks are seeing mixed moves even as the broader market remains under pressure due to the ongoing Iran war and rising oil prices. select metal stocks are showing resilience, supported by global supply concerns and rising commodity prices.
The BSE Metal index was trading at 36,869.52, up 33.25 points or 0.09% around 10:42 am, indicating mild gains. However, the trend on the NSE remained slightly weak, with the Nifty Metal index down 0.05% at 11,156.20.
On the NSE, gains were seen in select stocks. National Aluminium Company (NALCO) rose 4.56%, SAIL gained 3.56%, Hindalco Industries climbed 2.92%, and Vedanta was up 2.09%. JSW Steel also saw a mild gain of 0.14%.
At the same time, several stocks remained under pressure. Hindustan Zinc fell 0.71%, NMDC slipped 0.19%, and JSW Steel declined 1.13% in early trade. Adani Enterprises dropped 1.65%, while Jindal Steel and Power fell 1.79%.
Among the sharpest losers, Tata Steel declined 2.27%, APL Apollo Tubes fell 1.79%, Lloyds Metals dropped 2.35%, and Hindustan Copper saw a steep fall of 5.06%.
The metal sector has already seen a correction in recent weeks.
Nifty Metal has declined by nearly 9% over the past month. This fall is linked to several factors, including rising global uncertainty due to the West Asia conflict, tariff-related news, volatility in base metal prices, higher trading margins, and profit booking in stocks that performed strongly through 2025.
The Iran war has further added to volatility. Rising oil prices are increasing input costs and affecting investor sentiment across global markets.
is now directly affecting the global metals supply chain, especially aluminium.
According to a CLSA report, the Middle East accounts for about 6.9 million tonnes of aluminium smelting capacity, which is roughly 9% of global primary aluminium supply. It also holds around 4.5 million tonnes of alumina refining capacity, much of which is export-focused.
Any disruption in this region can quickly tighten supply. One aluminium smelter with capacity of 0.6 million tonnes has already stopped production. The report notes that shutting and restarting smelters is a long and costly process, which means supply disruptions can have a lasting impact.
The report states that a prolonged conflict could raise energy costs and transport costs, tightening the demand-supply balance. It draws a comparison with Europe’s 2022 energy crisis, when smelter shutdowns led to sustained supply issues.
This has made aluminium one of the most sensitive metals to the current conflict.
Despite short-term volatility, global supply concerns are creating opportunities for Indian metal companies. Firms with backward integration and strong domestic sourcing are better placed, as they can benefit from higher global prices without facing a similar rise in costs.
CLSA said, “We believe Indian base metal stocks could be a key beneficiary of a higher commodity price on backward integration and domestic sourcing, leading to better spreads.”
The brokerage highlighted Vedanta as one of the best placed companies in the current scenario due to its exposure to aluminium, zinc, and oil. It said, “Given its exposure to multiple commodities, such as zinc, aluminium and oil, Vedanta is well placed to benefit from the current commodities upcycle.”
The report also noted that higher aluminium prices could lead to 23–33% higher aluminium EBITDA per tonne for FY27–28 and an 18–22% increase in overall EBITDA for the company.
Axis Securities remains positive on the sector despite recent correction. The brokerage has suggested a “buy on dips” approach, saying that demand drivers remain strong.
It said that supply constraints support non-ferrous metals, while safeguard duties and strong domestic demand are positive for Indian steel producers.
The metal sector is likely to remain volatile in the near term due to global uncertainty and fluctuating commodity prices. However, the Iran war is also creating a structural shift in global supply dynamics, especially for aluminium.
While short-term pressure may continue, rising global prices and supply disruptions could support Indian metal and aluminium stocks over the medium term.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)