Metal shares outperform in subdued session, NIFTY Metal index zooms 1.75% led by SAIL, Hindustan Copper

Metal shares were outperforming in an otherwise weak session on Tuesday, December 30, powered by a broad-based buying interest in shares of metal companies. Measure of metal stocks on the National Stock Exchange, NIFTY Metal index, rose as much as 1.75% to hit an intraday high of 10,978. The index resumed its nine-day winning streak after a pause in the previous session.

The NIFTY Metal index has outperformed NIFTY50 index as the gauge has advanced 6.65% so far this month compared with nearly 1% decline in the NIFTY50 index, data from the NSE showed.

In Tuesday's session all 15 shares, barring two stocks, in the NIFTY Metal index were trading higher led by Hindustan Copper's over 7% gain.

Shares of the country's leading copper producer rose for an eighth straight session amid surging prices of copper in the international and domestic markets. The company's shares have surged as much as 41% in the last eight trading sessions to hit an intraday high of ₹519.80 on Tuesday. The stock touched its record high of ₹545.95 in the previous session.

So far this year, copper prices have rallied by more than 50% and are poised for their biggest annual gain since 2009, supported by rising demand from technology and energy transition sectors and tariff-related uncertainties.

Market experts noted that global copper prices have surpassed the $12,000-per-tonne mark on the LME for the first time and will continue to march higher on the bourse.

They attributed the current surge to supply challenges in major producing regions such as Chile and Indonesia, where environmental disruptions and operational issues have contributed to a tighter global market.

SAIL, National Aluminium Company, NMDC, Jindal Stainless, Jindal Steel, Tata Steel, Hindalco, Vedanta, Hindustan Zinc and JSW Steel were also among the gainers in the NIFTY Metal index and rose between 1%-5%.

As of 1:45 pm, NIFTY Metal index traded 1.67% higher and was the top gainer among the major sector gauges compiled by the NSE.