Metal index hits record high, rises for 4th day; Nalco, Hind Copper, others gain up to 5%: Here are three reasons

Metal shares rise in trade. 

• Nifty Metal index hit a record high, gaining over 5 percent in four sessions
• National Aluminium Company led gains, rising nearly 5 percent
• Weak dollar, China factory growth, and higher global metal prices boosted stocks

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Shares of metal firms extended gains for the fourth straight session on Friday, with National Aluminium Company, Hindustan Copper and others rising up to 5 percent on strong buying interest.

The Nifty Metal index climbed to a fresh record high of 11,433.80 during the session. Twelve of its 15 constituents settled in the green. The index has gained over 5 percent in the past four sessions. It gained in 11 out of the last 12 sessions.

National Aluminium Company led the pack, settling nearly 5 percent higher at Rs 329.55 per share on the NSE.

Hindustan Copper rose 3.7 percent, while Hindalco Industries gained 3.5 percent.

Other stocks such as Hindustan Zinc, Vedanta, Jindal Steel and NMDC were also higher, rising up to 2.5 percent.

Key factors supporting metal stocks

1) Weak dollar: The dollar index registered a 9.4 percent decline in 2025 — its biggest fall in eight years. A weaker dollar makes commodities priced in the US currency cheaper for buyers using other currencies, supporting demand and prices of metals.

2) China data: China’s factory activity unexpectedly returned to expansion in December after eight straight months of contraction. The official purchasing managers’ index rose to 50.1 in December from 49.2 in November, according to data released by the National Bureau of Statistics, crossing the 50-mark that separates growth from contraction and beating market expectations, reported Reuters.

3) Global metal prices: Aluminium prices on the London Metal Exchange touched $3,000 a tonne for the first time since 2022. Higher global prices tend to improve earnings outlook for metal producers.

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