SYNOPSIS: Metal stocks rallied sharply as aluminium prices surged amid Middle East supply disruptions. The Nifty Metal Index rose over 3 percent, with Hindalco, Tata Steel and others leading gains during Thursday’s trading session.
Metal stocks witnessed strong buying interest during Thursday’s trading session, emerging as the best-performing sector. The Nifty Metal Index climbed nearly 3.6 percent to hit an intraday high at 12,200.9, recovering after a decline of around 4 percent in the previous session. The rebound in metal stocks came amid improving sentiment in the broader market, even as geopolitical tensions between the United States and Iran and rising crude oil prices continued to keep global markets on edge.
Over time, following trump tariff and global uncertainties, prices of several metals have soared skies with aluminium prices surging over 20 percent in the last 3 months and currently being traded at Rs. 300 per kg.
Aluminium is widely used across industries due to its lightweight, durable, and corrosion-resistant properties. Key applications include transport (aircraft, cars, marine parts), packaging (cans, foil), construction (windows, doors, roofs), and electronics (laptop casings, power lines). It is essential for, and often replaces, heavier metals to improve fuel efficiency and structural design.
The rally in metal stocks was largely driven by a sharp rise in aluminium prices, which continued to move higher on Thursday. Prices gained momentum as concerns over supply disruptions intensified following developments in the Middle East, where the ongoing conflict has started affecting shipments from key aluminium-producing regions.
One of the key triggers for the price surge was an announcement by Aluminium Bahrain (Alba), one of the world’s largest aluminium smelters. On Wednesday, the company declared force majeure, temporarily suspending shipments after marine traffic through the Strait of Hormuz slowed significantly, raising concerns over potential supply interruptions.
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Shipping activity through the Strait of Hormuz, a critical global trade route, has been severely disrupted after Iran announced the closure of the strait earlier this week. The decision followed a joint military strike by the US and Israel, after which Tehran warned that vessels attempting to pass through the corridor could face military action.
The Strait of Hormuz plays a crucial role in global commodity trade, particularly for energy and metals shipments from the Middle East. Any disruption in this route immediately raises concerns about supply shortages, which in turn pushes global metal prices higher.
Supply worries were already building before Alba’s announcement. Earlier, Norsk Hydro had revealed that it initiated a controlled shutdown of its aluminium JV in Qatar and also declared force majeure, further tightening expectations around global aluminium supply.
The Gulf region is an important hub for aluminium production, accounting for roughly 8 percent of global supply last year. With two major producers facing operational disruptions, market participants are increasingly factoring in the risk of supply shortages, which has supported the recent rise in aluminium prices and boosted metal stocks.
Top Gainers
The rally in metal prices was also reflected in the share prices of several metal companies, with the following stocks from the Nifty Metal Index witnessing strong gains during Thursday’s trading session:
JSW Steel Limited
With a market cap of Rs. 3.01 lakh crore, the stock moved up by around 3 percent on BSE, to hit an intraday high at Rs. 1,245.7 on Thursday. JSW Steel Limited is an integrated manufacturer of a diverse range of steel products with its manufacturing facilities located at Vijayanagar Works in Karnataka, Dolvi Works in Maharashtra, Salem Works in Tamil Nadu, and Raigarh Works in Chhattisgarh.
The company also has a Plate and Coil mill Division in Anjar (Gujarat), and has entered into long-term lease arrangements of iron ore mines located at Odisha, Karnataka and Goa.
Tata Steel Limited
With a market cap of Rs. 2.47 lakh crore, the stock moved up by around 3.2 percent on BSE, to hit an intraday high at Rs. 203 on Thursday. Tata Steel Limited is Asia’s first integrated private steel company setup in 1907. The company has a presence across the entire value chain of steel manufacturing, from mining and processing iron ore and coal to producing and distributing finished products. The company has a target to increase domestic steelmaking capacity to 30 MTPA by 2025.
Welspun Corp Limited
With a market cap of Rs. 21,571 crore, the stock moved up by more than 4 percent on BSE, to hit an intraday high at Rs. 827.7 on Thursday. Welspun Corp Limited is primarily engaged in the business of manufacturing and distributing steel and steel products. It also manufactures Ductile Iron (DI) Pipes, TMT (Thermo-Mechanically Treated) Rebars, BIS-certified Steel Billets, Stainless Steel Pipes and Tubes & Bars.
Hindalco Industries Limited
With a market cap of Rs. 2.19 lakh crore, the stock moved up by around 7 percent on BSE, to hit an intraday high at Rs. 983.85 on Thursday. Hindalco Industries Limited is primarily engaged in the business of two main streams of business, namely Aluminium and Copper.
In the Aluminium business, it has presence across the entire value chain starting from mining of bauxite and coal through production of primary Aluminium (Upstream Segment) and value added products (Downstream Segment) like flat rolled product, extrusion and light gauge products for use in various applications like packaging, can, foil, battery enclosures, food and beverage as well as products for use in aerospace, automotive, electronic, EV, transportation, building and construction and other industrial products.
In the Copper business, Hindalco has one of the largest single location Copper smelting facilities in India. The company produces copper cathode, copper rods and precious metals. It is also expanding its business horizon in Internally Grooved Copper Tube and Copper Scrap Recycling.
National Aluminium Company Limited
With a market cap of Rs. 73,584.6 crore, the stock moved up by more than 8 percent on BSE, to hit an intraday high at Rs. 404.2 on Thursday. National Aluminium Company (NALCO) Limited is engaged in the business of manufacturing and selling of Alumina and Aluminium. It operates a 22.75 lakh MTPA alumina refinery plant located at Damanjodi (Odisha) and a 4.6 lakh MTPA aluminium smelter in Angul, Odisha.
The company has a captive bauxite mine adjacent to the refinery plant to feed the bauxite requirement of the Alumina Refinery and also a 1200 MW captive thermal power plant adjacent to the Smelter plant to meet the power requirement of the Smelter, along with captive coal mines at Angul to meet coal requirements of the power plant.
Besides, NALCO also operates four wind power plants with a total capacity of 198.40 MW located in Andhra Pradesh (Gandikota), Rajasthan (Ludherva & Devikot) and Maharashtra (Sangli).
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