In an otherwise lackluster trading session on Dalal Street, the metals pack has emerged as the clear outperformer, with key stocks scaling fresh highs and driving sectoral gains. The Nifty Metal index has shown strong momentum, led by companies such as Hindalco Industries, National Aluminium Company (NALCO), and Vedanta, which have hit multi-year or record levels. Vedanta is on track for one of its strongest single-day performances in recent months, while Tata Steel is poised for its best session since September 2025. Analysts attribute this sharp rally in metal stocks — and the broader surge in precious and base metals — to a powerful combination of supply constraints, geopolitical factors, central bank demand, and robust industrial consumption.

Precious metals continue bull run

Precious metals, particularly gold and silver, have been standout performers. Over the past 12 months, gold has delivered returns of around 75%, while silver has surged by an impressive 200%. In 2025, gold reached all-time highs on 53 occasions, and in the early days of 2026, it has already notched new records multiple times (currently trading around $4,600–$4,650 per ounce). Key drivers include ongoing geopolitical tensions, softer-than-expected US economic data, a weaker dollar index, and anticipation of further interest rate cuts by the US Federal Reserve.

Silver has significantly outperformed gold, benefiting from structural supply tightness. China's implementation of export restrictions on refined silver effective January 1, 2026 — limiting approvals to just 44 companies and affecting 60–70% of global refined silver exports — has intensified the squeeze. High silver lease rates (around 8%), persistent market deficits (now in the sixth year), and reduced production from major producer.

Copper has also hit all-time highs across major exchanges (LME, COMEX, Shanghai, and India), trading around $5.96–$6.00 per pound or $13,000+ per ton. Factors include China's efforts to curb oversupply, aggressive US stockpiling amid tariff speculation, and explosive demand from electric vehicles (EVs), data centers, renewables, and AI infrastructure.

Mexico have fueled premiums in various regions (e.g., India at elevated levels, with international benchmarks pushing toward $90–$100 per ounce in some markets). Analysts project silver could reach $100–$150 per ounce in 2026, supported by strong inflows and industrial demand from EVs, solar, and electronics. Gold-related plays include gold finance companies (e.g., Muthoot Finance and Manappuram Finance), which benefit from higher gold prices and potentially lower borrowing costs.The metals sector's outperformance underscores a broader "commodities-first" theme in 2026, even as broader indices remain subdued .