Highlights

• Nifty Metal index gained over 2% on December 12.
• China’s “proactive” fiscal stance supported sentiment in global metal markets.
• US Federal Reserve’s rate cut added to the momentum in metal stocks.
• Hindustan Copper and Hindustan Zinc led the list of notable gainers.

Metal shares continued their upward trend on December 12, aided by favourable international developments such as China’s policy signals, the US Federal Reserve’s latest rate decision, and movements in global currency markets. The Nifty Metal index climbed over 2% to 10,478 around midday, marking its third consecutive session of advances. With this rise, the index approached its 52-week high of 10,837.

China’s Fiscal Policy Signals Lift Sentiment

A major driver for the sector has been China’s recent communication on fiscal measures. Policymakers indicated that they would maintain a “proactive” fiscal approach through the next year, aimed at supporting consumption and investment. This commitment comes against concerns of a slowdown in China during the second half of 2026, affecting several segments of its economy aside from those tied to its trade surplus.

Since China is both the world’s largest producer and consumer of metals, expectations of growth-linked stimulus often influence demand forecasts and pricing trends. Any indication of policy continuity tends to create a supportive backdrop for metal-linked sectors globally.

Currency Movements and Fed Signals Influence Market Dynamics

The US dollar has weakened relative to major currencies such as the Euro and Japanese Yen following the Federal Reserve’s recent meeting. Fed Chair Jerome Powell suggested that the central bank may pause its easing cycle at the January policy review. The Federal Open Market Committee also noted that future rate decisions would depend on incoming economic data.

However, the Indian rupee has continued to decline against the dollar and touched a fresh low on December 12, influenced partly by the absence of progress on a US trade agreement.

In addition, the US Federal Reserve announced a 25-basis-point rate cut, the third in a row, bringing the benchmark rate to the 3.5%–3.75% range. Lower US rates may ease borrowing conditions for global capital, potentially directing more flows into markets like India, which can influence sectors including metals.

Top Gainers in the Metal Segment

Among individual metal stocks, Hindustan Copper emerged as the top performer, rising over 6% to ₹379.65. Hindustan Zinc followed with gains of more than 5%. Shares of National Aluminium Company (NALCO) advanced over 4%, while Tata Steel climbed nearly 3%.

Tata Steel’s move came after the company outlined new capital expenditure plans. These included expanding long steel product capacity at wholly-owned subsidiary Neelachal Ispat Nigam, setting up a 2.5-million-tonne-per-annum thin slab caster and rolling mill in Odisha, and partnering with Llyods Metals & Energy for activities covering iron ore mining, logistics, pellet production, and steel manufacturing.

Other notable gainers included Hindalco Industries, Vedanta, Steel Authority of India (SAIL), NMDC, and JSW Steel, each up around 2%. Jindal Stainless Steel, Jindal Steel & Power, and APL Apollo Tubes recorded gains of around 1%. Adani Enterprises also traded in positive territory with marginal improvement.

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