Hindustan Copper, Vedanta, HZL: Metal stocks dazzle, NIFTY METAL index up over 2%; here is why

In comparison, the benchmark NIFTY50 index was trading 0.44% higher at 26,012.25 levels.

The top gainers from the metal pack were Hindustan Copper (up 5.76%), Hindustan Zinc (up 5.42%), National Aluminium Company Limited, or NALCO (up 4.11%), and Hindalco Industries (up 2.59%).

On a year-to-date (YTD) basis, the NIFTY METAL index has rallied over 20%; while in the past year, the index has gained around 10%, thus outperforming the NIFTY50 index.

Last month, in its report, HSBC said that balance sheets of most Indian metal companies are relatively strong, as they have deleveraged, and the long-term outlook is bright, as the metals intensity of GDP growth remains elevated, given increasing urbanisation and higher spending on infrastructure, housing construction and industrial expansion.

Outlook for Hindalco, NALCO bright

HSBC said that the outlook for aluminium stocks such as Hindalco and NALCO is bright.

HSBC said aluminium is its most preferred commodity, given China’s capacity cap and steady global demand.

"We also have a positive view on silver and expect prices to remain firm, given increasing investor demand. We see steel as a more cyclical opportunity, given the seasonality of demand and lower Chinese steel production. The safeguard duty of 12% in India provides domestic steel companies with earnings support. We see coal and iron ore as being relatively more challenged, given looser supply-demand balances."

Meanwhile, metal shares were in demand also because of positive business updates by companies, as well as rallies in commodities such as copper and silver.

Hindustan Copper shares were in heavy demand as copper prices surged to a fresh all-time high on Thursday, after the Federal Reserve delivered a widely expected interest-rate cut and upgraded its growth forecast for the US economy.

A Nasdaq.com report noted that copper demand continues to rise, driven by the energy transition, artificial intelligence (AI), expanding data centres, and rapid urbanisation across the Global South. In 2025, demand was also boosted by concerns over US tariffs, prompting traders to accelerate imports of refined copper into the country.

Similarly, Hindustan Zinc was on buyers' list given the record rally in silver.

Silver prices jumped ₹2,400 to a fresh all-time high of ₹1,94,400 per kilogram in the national capital on Thursday, tracking firm global cues amid weakness in the rupee and a rate cut by the US Federal Reserve.

The white metal had rallied sharply on Wednesday, rising ₹11,500 to scale the record level of ₹1,92,000 per kg, according to the All India Sarafa Association.

Since the beginning of the calendar year, silver has climbed ₹1,04,700, or 116.72%, from ₹89,700 per kg on December 31, 2024.

Vedanta

Shares of Vedanta were trading 2.5% higher at ₹542.10 apiece on the NSE after the company on Thursday said it has been declared the successful bidder in respect of the Genjana Nickel, Chromium and PGE Block after fulfilling the required statutory compliances via a letter dated December 10, 2025 (received at 6:30 PM IST).

"This receipt of the successful bidder for the Genjana Nickel, Chromium and PGE Block under Critical Mineral Auctions Tranche III shall further strengthen the company’s critical minerals portfolio," the company said.

On a YTD basis, the stock has gained 21%.

Tata Steel

The steel major earlier this week said its board approved the acquisition of a 50.01% stake in Odisha-based Thriveni Pellets Pvt Ltd (TPPL) for up to ₹636 crore.

The company also said in the regulatory filing that its board has affirmed the long-term growth strategy for the India business and considered several options and proposals.

In line with the objective of pursuing prudent capital allocation and profitable growth, the company will prioritise investments in volume growth, added downstream portfolio, identified mining assets and infrastructure to serve the needs of the India business, it said.

The company will also invest in low-carbon, low-capital-intensity process technologies for sustainable steelmaking of the future.

The board has accorded in-principle approval for the 4.8 MTPA capacity expansion at Neelachal Ispat Nigam Ltd (NINL).

Shares of Tata Steel on Friday were trading 2.78% higher at ₹171 apiece on the NSE.

YTD, the stock has rallied over 24%.