Nifty Metal Index Rises 1.2% on Global Demand Optimism and Firm Commodity Prices

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India’s Nifty Metal Index (.NIFTYMET) climbed 1.2% on October 15, 2025, supported by firm global metal prices, strong export orders, and investor optimism around infrastructure-led demand. Gains in stocks like Hindalco, JSW Steel, and SAIL led the rally, reflecting renewed momentum in the metals and mining sector.

The Nifty Metal Index posted a notable gain of 1.2% in Tuesday’s trade, outperforming broader market indices amid a mixed session. The rally was driven by positive global commodity cues, robust export demand, and expectations of increased infrastructure spending in both domestic and international markets.

Key Highlights:

Index Movement: The Nifty Metal Index closed 1.2% higher, with strong contributions from Hindalco Industries, JSW Steel, Tata Steel, and SAIL. The index touched an intraday high of 10,340.8, reflecting bullish sentiment in the sector.

Global Price Support: Base metal prices, particularly aluminum and copper, remained firm on the London Metal Exchange (LME), buoyed by supply constraints and resilient demand from China and the US.

Export Momentum: Indian metal exporters reported higher order volumes for Q3, especially in flat steel and aluminum products, as global buyers seek alternatives amid geopolitical supply disruptions.

Domestic Demand Drivers: Analysts cited ongoing infrastructure projects, railway modernization, and urban housing schemes as key catalysts for sustained domestic demand in steel and non-ferrous metals.

Investor Sentiment: The sector also benefited from short-covering and rotational buying, as investors shifted focus from IT and FMCG to cyclical sectors with earnings visibility.

Valuation Comfort: Despite recent gains, metal stocks continue to trade at reasonable forward P/E multiples, making them attractive for medium-term investors amid improving fundamentals.

Notable Updates:

The Nifty Metal Index has gained over 7.5% in the past three months, supported by a 23.8% return over the past six months.

Brokerage houses have upgraded earnings forecasts for top metal producers, citing margin resilience and cost optimization.

With global tailwinds and domestic policy support, India’s metal sector appears poised for a strong second half of FY26, making it a key watchlist candidate for both institutional and retail investors.

Sources: Economic Times, Trendlyne, Lemonn Blog

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