Hindalco stock ends up over 3% after intraday surge; Nifty Metal index gains 2% as aluminium prices rise on supply disruptions

Markets

• Hindalco surged 6 percent, leading gains in metal stocks
• Nifty Metal index rose 3.1 percent, best among sectoral indices
• Aluminum prices rise due to Middle East supply concerns

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Metal stocks ended higher on Thursday, with Hindalco Industries rising more than 3 percent after surging over 6 percent during intraday trade, as aluminium prices climbed amid Middle East supply disruptions, lifting the Nifty Metal index over 2 percent by the close. At the closing bell, the Sensex rose 899.71 points or 1.14 percent to 80,015.90, while the Nifty gained 285.40 points or 1.17 percent to 24,765.90. Market breadth remained firmly positive with 2,644 stocks advancing against 1,430 declines.

Among the top gainers on the Nifty, Hindalco Industries ended up 3.6 percent, though the stock had rallied over 6 percent earlier in the session, emerging as one of the biggest contributors from the metal pack. JSW Steel gained about 2.9 percent, while Tata Steel advanced around 2 percent.

The rally in metal stocks extended beyond the benchmark index. Nalco (National Aluminium Co) stock jumped over 6.5 percent, Vedanta gained about 1.5 percent, and Hindustan Zinc added nearly 1 percent in broader market trade. The gains helped push the Nifty Metal index up 2.29 percent, making it the best-performing sectoral indices during the session after rising more than 3 percent intraday.

• Also read | L&T share price gains over 1%, brokerages say ‘buy’ despite Middle East risks, see recovery if disruption eases

Qatar smelter shutdown stokes aluminium prices

The rebound in metal stocks comes after sharp selling pressure in the previous session and follows renewed supply concerns in global commodity markets. Aluminium prices recently surged on the London Metal Exchange after Middle East supply disruptions intensified, with shipments from Bahrain halted and Qatar-based smelter Qatalum beginning a shutdown due to gas supply constraints.

Shipping disruptions through the Strait of Hormuz, a key route for global energy and commodity trade, have also raised concerns about supply chains for metals produced in the Middle East, which accounts for a significant share of global aluminium output.

The rebound in energy stocks also reflects continued strength in crude oil prices as the ongoing conflict in the Middle East keeps global supply risks elevated.

Despite gains in commodity-linked sectors, volatility remained elevated in the broader market. The India VIX declined about 9 percent to 19.24, while most other sectoral indices traded with modest gains, though Nifty IT remained under pressure, falling about 0.6 percent.

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