Nifty Metal Jumps Over 3%; SAIL, Hindustan Copper Lead - Here's What Happened

Nifty Metal: Metal stocks saw a strong rally on May 13, with several counters jumping as much as 15 per cent during the session. The Nifty Metal index also rose sharply, gaining up to 3.21 per cent, supported by buying across steel, copper, aluminium, and zinc companies.

Among the top gainers, Steel Authority of India Ltd (SAIL) surged as much as 14.60 per cent, while Hindustan Copper rose 6.27 per cent. Vedanta and NMDC also gained around 6 per cent each. Other major metal stocks such as Hindustan Zinc, Tata Steel, National Aluminium, and Adani Enterprises climbed more than 4 per cent. All stocks in the Nifty Metal index were trading in the green during the session.

Why Metal Stocks Are Rising Today

The rally in metal stocks was led by a mix of government policy support, global commodity strength, and sector-specific demand trends.

Import duty hike on gold and silver boosts sentiment

A sharp hike in import duty on gold and silver emerged as one of the key triggers for the rally, lifting sentiment across the broader metals pack and particularly supporting silver-linked stocks.

Amarjeet Maurya, Deputy VP – Fundamental Research at Kotak Securities, said, “The rally in the metal pack was mainly due to the sharp increase in import duty on gold and silver.”

Vaqarjaved Khan, CFA, senior fundamental analyst at Angel One, also said “The gold and silver import duty hike is clearly the bigger trigger for Hindustan Zinc and, to a lesser extent, Vedanta.”

He added that the outlook remains supportive: “The medium-term outlook also remains positive, supported by safeguard duties.”

Safeguard duty supports steel stocks

Domestic steelmakers also gained traction after the government announced a three-year safeguard duty on steel imports, starting at 12 per cent in the first year. The move is expected to support pricing and reduce cheap import pressure.

Global commodity strength adds tailwind

A strong global backdrop for industrial metals also supported the rally, with copper prices hitting record highs and aluminium staying firm amid tight supply conditions.

Maurya pointed to continued strength in non-ferrous metals, saying demand is being supported by emerging sectors such as electric vehicles and renewable energy. He also highlighted that global supply remains constrained, which is keeping prices elevated and adding to the positive sentiment in the space.

Khan added that not all stocks are reacting to the same trigger. “SAIL’s gains are linked more to the broader metal upcycle, while Hindustan Copper is tracking strength in industrial metals,” he said.

Silver exposure

Analysts said the bullion duty hike had a direct impact on silver-linked companies.

Maurya highlighted stock-specific effects, saying the duty hike is driving gains in Vedanta and Hindustan Zinc due to their silver exposure, while broader buying in SAIL and Hindustan Copper reflects sector-wide optimism.