SAIL, JSW Steel, Hind Copper shares rise up to 5%; metal index up 2%: Here are three reasons why

The shares of metal companies surged on November 26, pushing the Nifty Metal index higher up into the green for the second consecutive session. This comes after Steel Secretary hinted at the government being close to a decision on safeguard duty on some steel imports.

The sharp surge in metal stocks was also driven by positive investor sentiment amid higher hopes for RBI delivering a rate cut during its upcoming meet in December boosted investor sentiment.

The Nifty Metal index jumped more than 2 percent to close at 10,280.70, emerging as the top sectoral gainer on the market today. The index has now gained around 3 percent in two days.

 

What the Steel Secretary said:

Sandeep Poundrik, Secretary, Ministry of Steel, on Tuesday said that the government is expected to take a decision on safeguard duty on some steel imports "in the near future".

While speaking to CNBC-TV18, Poundrik said the government is reviewing the Directorate General of Trade Remedies' recommendation for a three-year safeguard duty after the provisional duty expired in early November.

He did not give a timeline, while confirming that there is no safeguard duty in place as of now.

 

What spurred higher RBI's rate cut hopes?

Earlier on Monday, Reserve Bank of India (RBI) Governor Sanjay Malhotra said there is scope to further reduce policy interest rates. "At the last MPC meeting in October, it was communicated clearly there is room to cut policy rates. Since then, the macro-economic data we have received has not indicated that the room to lower rates has decreased," he said during an interview with Zee Business.

“There is certainly room (to lower rates) but whether the MPC takes a call on that in the coming meeting or not, depends on the committee,” he added. Notably, RBI’s Monetary Policy Committee (MPC) cut rates by a total 100 basis points in the first half of 2025, but maintained a pause since August.

 

Fed rate cut hopes:

Additionally, the US Federal Reserve is also likely to cut rates. A rate cut in the US could reduce borrowing costs for foreign investors, encouraging them to invest in higher growth markets in India. This boosts metal stocks.

 

Here's what analysts say:

"The rally in metal stocks today is a clear response to optimism around a potential RBI rate cut and positive commentary from the steel secretary. Metals are gaining as global price volatility eases," said Shashank Gupta, Director, RPS Group.

"Today’s positive market opening, led by metals and real estate, reflects strong domestic demand, supportive policy expectations, and improving global cues. Metal stocks are gaining momentum due to firm commodity prices and continued infrastructure spending, which is improving visibility for earnings across the sector," said Pranay Aggarwal, Director and CEO of Stoxkart.

Explaining the technical side of the index, Drumil Vithlani, Technical Analyst at Bonanza, said, "The index has taken support near 10,000–10,050, aligning with the rising trendline and maintaining its broader uptrend. Price is hovering around short-term EMAs, indicating a temporary consolidation after the recent pullback from 10,700+. Momentum is neutral with RSI near 50, suggesting stability but no strong direction yet. A close above 10,300–10,350 is needed to revive bullish momentum toward 10,500–10,700. If the index slips below 9,950–10,000, the structure weakens and may trigger a deeper correction toward 9,800. Overall, the trend remains positive as long as the index holds above the 10,000 support zone."

 

Top gainers among metal stocks today:

Lloyds Metals and Energy shares were the top gainers on the Nifty Metal index, rising nearly 5 percent to close at Rs 1,245 apiece. JSW Steel shares jumped nearly 4 percent.

Steel Authority of India (SAIL) shares gained over 3 percent, while Hindustan Copper, JSL, Vedanta and NMDC shares rose more than 2 percent each.

Tata Steel, APL Apollo Tubes, Jindal Steel and Power, National Aluminium Company (NALCO) and Hindustan Zinc shares were up around 2 percent each, while Hindalco Industries and Welspun Corp shares closed more than 1 percent higher each.

Bucking the trend, Adani Enterprises shares were trading in the red with marginal losses.

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