Vedanta Aluminium, Hindustan Zinc, Vedanta Ltd: Vedanta group stocks rally; key developments to know

Shares of Vedanta Ltd, its subsidiary Hindustan Zinc (HZL) and the four recently demerged entities, Vedanta Aluminium (Aluminium Metal), Vedanta Oil & Gas, Vedanta Iron & Steel, and Vedanta Power, were trading in positive territory in the early trade on Thursday, August 20.

At 09:37 AM, shares of HZL traded 2.24% higher at ₹569.50 apiece on the NSE, while Vedanta was up 2% at ₹267.90. Vedanta Aluminium Metal was trading 1.86% higher at ₹444.30, and Vedanta Power was up over 1.17% at ₹36.29.

Vedanta Iron and Steel shares traded 2.85% higher at ₹37.14 apiece on the NSE.

Besides, the NIFTY METAL index was also trading in the green, with 14 out of 15 constituents in the green. The index stood at 13,027.10 around 9:46 AM. Among constituents, Hindustan Copper was up 0.57% on the NSE, while JSW Steel was up 0.09%. National Aluminium Company (NALCO) was up 0.31% at ₹387.75.

What market participants need to know

India’s metals and mining sector is poised for strong growth, supported by favourable policies, abundant mineral resources, and rising demand from infrastructure, automotive, and energy sectors.

Government initiatives such as the Union Budget FY27 measures, critical mineral focus, and increased investments are boosting domestic production, reducing import dependence, and strengthening supply chains, notes an article by India Brand Equity Foundation (IBEF).

The sector contributes significantly to industrial development, GDP growth, and employment, while ongoing reforms, capacity expansions, and global partnerships are further enhancing its long-term growth potential and positioning it as a key driver of India’s self-reliance and economic expansion, the article adds.

Key points

• On April 9, 2025, the Government launched the National Critical Mineral Mission (NCMM) to strengthen India's critical minerals sector through 1,200 exploration projects, faster approvals, private participation and processing infrastructure, boosting self-reliance and domestic mining capabilities.

• The Union Budget 2026–27, presented on February 1, 2026, outlines several government initiatives to strengthen India’s metals and mining sector as part of a broader push for industrial growth and self-reliance.

Key measures include the proposal to develop dedicated mineral corridors in resource-rich states such as Odisha and Tamil Nadu, along with import duty exemptions on capital goods for critical mineral processing, aimed at boosting domestic production and value addition.

The budget also emphasises manufacturing expansion, export promotion, and supply chain resilience, with a strong focus on critical minerals and downstream industries. These initiatives are expected to generate large-scale employment, enhance capacity creation, and position the sector as a key driver of economic growth amid evolving global supply chains.

• India is expected to surpass its steel production capacity target of 300 MT by 2030, reaching an estimated 330 MT.

• India is the second-largest producer of aluminium globally. The production of primary aluminium reached 7.07 lakh ton (LT) in FY26 (April-May 2025) from 6.98 LT in FY25 (April-May 2024). Iron Ore production for the month of October 2025 is 24.8 million tonnes, as compared to 22.9 million tonnes for October 2024.

The cumulative production of Iron Ore for FY26 (April-October 2025) is 156.6 million tonnes as compared to 158.4 million tonnes in FY25 (April-October 2024).

• India’s copper demand is expected to grow about 7% annually, led by renewable energy expansion, electric vehicles, and infrastructure projects including industrial corridors, national highways, and the Housing for All programme, with domestic consumption already exceeding 7,50,000 tonnes against production of about 5,55,000 tonnes, with demand projected to double by 2030.