Metal Stocks Rallied Up To 5% Today – Here’s Why

Shares of Hindalco, National Aluminium Company Limited (NALCO) and other metal stocks rose up to 5.22 per cent on October 24, 2025. The rally in metal stocks came despite the overall dowturn in the market.

The sharp rally pushed the Nifty Metal index up by 2.10 per cent to an intraday high at 10,457.40.

The flagship metal company of Aditya Birla Group, Hindalco’s shares jumped up to 4.30 per cent to hit intraday high at Rs 826.50 per share on the NSE before closing with 4.04 per cent gains at Rs 824.45 apiece. Similarly, shares of NALCO, the Navratna central public sector enterprise engaged in mining and refining of aluminum, gained as much as 5.22 per cent to Rs 240.20 apiece before closing at Rs 236.10 apiece, up 3.43 per cent.

Hindustan Copper shares closed higher by 3.40 per cent at Rs 343.10 per share, Vedanta shares settled 2.56 per cent higher at Rs 495.60 per share.

Rising Aluminium Prices Trigger Rally In Mining Stocks

The rally in aluminium prices on the London Metal Exchange (LME) triggered the rally in both the aluminium miners, Hindalco and NALCO. On LME, aluminium prices touched their highest since June 2022 on concerns about potential shortages after a smelter in Iceland was compelled to curtail production by two-thirds due to an electrical equipment failure.

The benchmark three-month aluminium futures contract crossed the $2,850 per tonne mark on LME on October 23. In the last month, aluminium prices have surged by nearly 9 per cent. Copper prices, too, have gained over 2.5 per cent in the past two sessions, LME data showed.

US Fed Rate Cut Optimism

The sentiment was further buoyed by expectations of monetary policy easing by the US Federal Reserve and a weaker US dollar, which typically makes dollar-denominated commodities more attractive. According to the CME FedWatch tool, markets are pricing in a 96.7 per cent probability of a 25-basis-point rate cut, which would bring the federal funds rate down to 3.75-4.00 per cent.

Additionally, in China, the world’s top metals producer, smelters are already operating near capacity, constrained by energy-consumption limits and carbon-reduction policies.