Metal shares extend gains, up 6% in 5-day run; Jefferies sees 26% potential upside in Tata Steel

Metal shares rise in trade. 

• Metal shares rose for the fifth session as China's factory activity grew in December.
• Nifty Metal index peaked at 11,532.10, led by Hindustan Copper's gains.
• Jefferies picked Tata Steel, JSW Steel, and Jindal Stainless as top sector bets

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Metal shares extended their rally for a fifth straight session on Monday, with the sectoral index gaining more than 6 percent over the past five trading sessions.

Metal shares have seen continued rise as the China’s factory activity unexpectedly returned to expansion in December after eight straight months of contraction. Addtionally, a weaker dollar supported the commodity. 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.

The Nifty Metal index rose nearly 1 percent during the session to touch an intraday high of 11,532.10.

Hindustan Copper led the gains, rising about 3 percent to Rs 557.80 a share. Steel Authority of India advanced 2 percent, while APL Apollo Tubes gained 1.87 percent.

Tata Steel, Jindal Stainless, Hindalco Industries and JSW Steel were also among the gainers, rising up to 2 percent.

Brokerage firm Jefferies said it has a positive view on the metals sector and has picked Tata Steel Ltd, JSW Steel Ltd and Jindal Stainless Ltd as its top bets.

Jefferies has set a price target of Rs 230 for Tata Steel, implying a potential upside of 26 percent from current levels. It has a target of Rs 1,400 for JSW Steel, indicating an upside of 18 percent and Rs 1,020 for Jindal Stainless, implying a 20 percent upside, according to a CNBC-TV18 report.

The brokerage has also raised its earnings estimates for Hindustan Zinc and Hindalco Industries by 4 to 7 percent to factor in higher silver and aluminium prices, the report said.

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