Indian metal stocks have emerged as one of the biggest turnaround stories in the recent relief rally, with most of them posting double-digit gains so far in April. Easing tensions in the Middle East, a weaker US dollar, attractive valuations, a recovery in base metal prices, and healthy business updates have all helped restore momentum in these counters.
The Nifty Metal index, which tracks the performance of 15 leading stocks, including Vedanta and Tata Steel, has surged 14.4% in the first 11 trading sessions of April.
This has helped it recover its 9% loss in March and outperform the benchmark Nifty 50, which gained 8.35% during the same period. The rally has pushed the index to a fresh record high of 12,816 in Thursday’s session, taking its year-to-date return to 14%.
Metals climb on price rebound, supply deficit fears and geopolitical optimism
One of the key drivers of the recovery has been a sharp rebound in base metal prices, as optimism grew that the conflict in the Middle East may be nearing an end.
This sentiment was supported by ongoing diplomatic efforts, including a key Pakistani mediator engaging in talks in Tehran, along with the Trump administration expressing hope for a deal that could reopen the crucial Strait of Hormuz.
In addition, the rally has been supported by concerns over a potential supply shortage in select base metals such as aluminium, as key facilities in West Asia were damaged during the US-Iran conflict, pushing prices to a four-year high in today’s session.
The global aluminium market is expected to face a supply deficit this year due to the Iran conflict, with a Gulf producer stating in early April that fully restoring production at one of its UAE smelters, hit by an Iranian attack in late March, could take up to a year.
Earlier this week, zinc rose to its highest level since 12 February, lead climbed to its strongest level since 3 March, and nickel reached a near three-month high for the second consecutive day.
Alongside the rebound in base metal prices, the decline in the US dollar has also supported the rally, as it makes commodities priced in dollars cheaper for global buyers. The dollar fell to 97 in today’s trade, its lowest level since late February.
Meanwhile, recent business updates point to strong operational performance. National Aluminium Company reported its highest-ever operational performance for FY26, while Tata Steel India achieved its highest-ever crude steel production at 23.48 million tonnes in FY26.
Hindustan Zinc, a subsidiary of Vedanta, reported its best-ever quarterly and annual mined metal production, along with a record quarterly refined metal output of 282 kt.
Welspun Corp, Adani Enterprises lead gains
All constituents of the Nifty Metal posted solid gains in April so far, led by Welspun Corp, which surged 32%, followed by Adani Enterprises rising 25% and Hindustan Copper gaining 24%.
Lloyds Metals & Energy climbed 22%, while Vedanta, Hindustan Zinc and Hindalco Industries advanced 19.56%, 18% and 17.56%, respectively.
Among other gainers, NMDC rose 14.5%, Steel Authority of India gained 13.4%, and National Aluminium Company (NALCO) added 12%. Jindal Stainless climbed 11%, while Jindal Steel & Power and Tata Steel rose 10.35% and 10%, respectively. JSW Steel gained 8.23%, and APL Apollo Tubes advanced 5.59%.
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