Nifty Metal Index Climbs 1% on China Stimulus and Foreign Inflows; SAIL, Tata Steel Lead Gains

Image Source: Bajaj Broking

India’s Nifty Metal Index rose 1 percent in the latest trading session, driven by renewed foreign institutional investor (FII) interest and optimism surrounding China’s economic stimulus. The rally marks a continuation of sectoral momentum, with 12 of the 15 constituent stocks trading in the green.

Key Highlights:

The index hit an intraday high of 8,981.05, led by gains in APL Apollo Tubes (up nearly 4 percent), Nalco (1.88 percent), Jindal Steel (1.83 percent), and SAIL (1.67 percent).
FIIs turned net buyers on November 25, investing ₹9,947.55 crore, while domestic institutional investors (DIIs) offloaded ₹6,907.97 crore worth of shares.
Technical indicators showed bullish divergence on hourly charts, signaling a rebound from the 8,700 support level.

Global Catalysts:

China’s Ministry of Finance announced a 10 trillion yuan ($1.4 trillion) fiscal package to address local government debt, boosting sentiment across global metal markets.
The People’s Bank of China also cut benchmark lending rates, raising hopes for increased demand in base metals like copper, aluminium, and steel.
Analysts believe India could benefit from trade shifts if proposed US tariffs on Chinese goods materialize, positioning Indian metal producers as alternative suppliers.

Market Outlook:

The rally is expected to sustain in the near term, supported by infrastructure spending, export demand, and favorable technical setups.
Stocks like Tata Steel, Hindalco, and JSW Steel remain key picks for investors seeking exposure to the metals sector.

Sources: Business Standard, Moneycontrol, Livemint, Nifty Indices (July 2025)