On Thursday, 15 May 2025, the Nifty Metal Index went up by 1.7%, and if you look at the previous three days of this week, the index has gone up by around 10%. Out of the previous four days in this week, the index has gained in three of them. So, what is driving this metal index to rise so significantly? Which metal stocks are driving the growth? Let’s find out in today’s blog here. 

Rising Metal Stocks 

The metal index top gainers as per the share price rise include NALCO, which gained around 14%, while JSPL was up by 13%, followed by SAIL and Jindal Stainless were up by 12% each. The lowest that a metal stock gained during yesterday was Hindalco Industries which was 5.5%, isn’t that significant?

Factors Driving the Metal Sector Rise

Recently, the change in the geopolitical scenario with the trade deal between the US and China has been promoting cyclicals like the metal sector. As both the economies come to terms for trade agreement, the global risk sentiment has improved to quite some extent boosting the metal stocks. 

Coming to the domestic setup, Tata Steel’s positive outlook on demand for margin stability is also fueling the metal stocks and improving the investors’ sentiment regarding the sector. 

The commodities market and the industrial sectors are benefiting from the broader market sentiment, which has low risk this week. 

Another important factor which is driving the metal prices is a sharp rebound in the prices of alumina. As per reports, Guinea may cancel the Emirates Global Aluminum (EGA) mining license. Now, EGA itself, in 2024, exported around 10.8 million tons of bauxite, which helped in the production of around 3.5 MT of alumina. Now, if the license is cancelled, then there can be shortages in the alumina, and thus, the pre-buying has been prompted, driving the prices of the metal higher. 

Here, NALCO has been one of the main beneficiaries of the price rise of alumina, which can lift the profit margins in the near term. 

Wrapping up 

While the metal sector rise may be huge given the just a week’s time, however, whether this rise will sustain or not, is something need to be watched out for. 

Source: CNBC TV18

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