Nifty, Sensex Trade In Range; Metal Stocks Outperform For 2nd Straight Session: What Is Leading The Rise?

Indian stock markets were trading in a range-bound manner on April 16 as investors waited for further updates on the second round of peace talks expected between the US and Iran. However, metal stocks outperformed broader sectoral indices for the second consecutive session.

The Nifty Metal index was trading nearly 1.5 per cent higher at 12,731.35, after rising as much as 2 per cent in early trade. Metal stocks had advanced as much as 6 per cent in the previous session. Compared to this, the benchmark Nifty and Sensex traded marginally higher on April 16, with the Nifty trading 31.45 points higher at 24,262.75 and the Sensex trading 121.26 points higher at 78,232.50.

Hindalco led the gains within the Nifty 50 index, trading 3 per cent up Rs. 1,042.65 per share, retaining its position among top gainers for the second consecutive session. Hindustan Zinc also gained over 3 per cent in early trade. This was followed by shares of Vedanta trading 2 per cent higher. Welspun Corp was also among the top gainers on April 16, gaining 4.7 per cent during the session. Among other gainers in the metals and mining sector were Adani Enterprises, National Aluminium Company (NALCO), JSW Steel, and Hindustan Copper.

Market sentiment has improved amid optimism surrounding the second round of peace negotiations between the US and Iran. US President Donald Trump has suggested that talks with Iran could resume this week in Pakistan. Israel and Lebanon have also agreed to hold further talks, which eased geopolitical tensions and lifted overall investor sentiment across markets.

The rise in metal stocks was partially led by a rise in copper prices, with copper futures rising for the second consecutive session above $6 per pound, around the highest level seen in nearly six weeks. The rally was supported by supply concerns after China banned the export of sulphuric acid.

The rise in metal stocks also came after brokerages said that while the earnings performance of metals and mining companies in the December quarter was largely supported by the non-ferrous segment, a sharp recovery in steel prices is expected to have improved performance in the iron segment during the March quarter.

According to a note by Anand Rathi Shares and Stock Brokers, India continues to remain central to the global ferrous growth narrative, supported by robust infrastructure spending, ongoing urbanisation, and manufacturing-led expansion. Domestic spot HRC prices have risen by 30 per cent since December 2025 to around Rs. 59,500/tonne, while primary rebar prices are up 29.5 per cent to about Rs. 60,000/tonne over the same period.

While input costs for companies with rising energy prices, particularly in coking coal and higher global freight costs, are expected to have put pressure on the margins, a rise in steel realisations is expected to more than offset the higher input costs. Currently, spot prices of steel are around Rs. 3,000-5,000 per tonne higher than the average in the March quarter, which is expected to support the momentum going into the first quarter of the current financial year 2026-27.