Metal Stocks Shine Ahead of Fed Rate Decision; Nifty Metal Index Hits Fresh Record
- 29th October 2025
- 12:30 PM
- 3 min read
Summary
Metal stocks rallied sharply on Tuesday ahead of the US Fed policy outcome, driving the Nifty Metal Index to a fresh record high of 10,824.70. The index has now gained for the third straight session, rising over 4% during the period, led by SAIL, Hindustan Copper, Hindustan Zinc, and Tata Steel.Mumbai | October 29
Metal shares rallied sharply on Tuesday, taking the Nifty Metal Index to a record high as investors bet on a possible US Federal Reserve rate cut later in the day. The index rose over 2% intraday to hit a new high of 10,824.70, marking its third straight session of gains and extending weekly advances to more than 4%.
Rate-Cut Expectations Boost Sentiment
Investor mood improved after global markets priced in a 25-basis-point rate cut by the US central bank. According to CME’s FedWatch Tool, traders see a more than 90% probability of a rate reduction at the conclusion of the Federal Open Market Committee (FOMC) meeting.
A softer interest-rate outlook has lifted appetite for metals, which are seen as cyclical beneficiaries of rising industrial and infrastructure activity. Easing inflation pressures in the US and signs of recovery in manufacturing activity across Asia have also supported the rally.
SAIL, Hindustan Copper Lead Gains
Among individual stocks, Steel Authority of India (SAIL) led the rally, jumping nearly 8% to ₹142, ahead of its quarterly results announcement. Hindustan Copper added over 3%, while Hindustan Zinc and NMDC gained close to 3% each.
Large-cap names such as Vedanta, JSW Steel, and Tata Steel advanced more than 2%, while Jindal Stainless, NALCO, and Hindalco Industries also traded higher. Adani Enterprises and APL Apollo Tubes gained up to 1%, contributing to the broader sector strength.
The rally was supported by firm metal prices, a positive demand outlook, and expectations of steady capital expenditure by governments and infrastructure-linked sectors.
Global Developments in Focus
Global risk appetite improved after reports said US President Donald Trump and Chinese President Xi Jinping could meet in South Korea this week to discuss trade ties. The move follows heightened tariff tensions earlier this month, after the US announced higher import duties on Chinese goods.
Hopes of easing trade tensions, combined with tight supply conditions and stable global commodity prices, have further boosted sentiment toward metal producers.
Jindal Steel & Power Q2 Performance
In company results, Jindal Steel & Power (JSPL) reported lower margins for the September quarter as weak pricing and slower sales weighed on profitability. Revenue rose 3% year-on-year to ₹115 billion, but EBITDA fell 12% to ₹18.75 billion, or ₹10,027 per tonne. Average steel prices dropped 5% sequentially, while long product prices fell 12%.
Production increased 1.5% year-on-year to 2 million tonnes, and sales volume rose 1% to 1.87 million tonnes. JSPL’s net debt stood at ₹141.6 billion, with leverage at 1.48 times EBITDA. The company also commissioned new capacity at Angul, doubling its hot metal output to 8.85 million tonnes.
Outlook
The metal index has gained nearly 30% so far in 2025, supported by firm prices, higher capacity utilisation, and steady demand from construction and engineering sectors. Market participants expect the sector to stay in focus as policy clarity from the US Federal Reserve and a possible easing of trade frictions could sustain momentum in the near term.
