Hindustan Zinc, Vedanta, NALCO Lead Metal Stocks Higher as India Hikes Gold, Silver Import Duty to 15%

Mumbai | 13 May 2026 

Metal stocks rallied sharply on Wednesday, 13 May, tracking a steep rise in gold, silver, and base metal prices. Hindustan Zinc, Vedanta, Hindustan Copper, NALCO, and Hindalco gained across the session as commodity prices lifted sector sentiment. The rally followed a government decision to raise import duties on several categories of gold, silver, and precious metals to 15% from 6%. 

How Did Metal Stocks Perform on 13 May? 

Nifty Metal rose 1.3%, with every constituent trading in positive territory. Hindustan Zinc led the index, surging nearly 5%. Hindustan Copper gained more than 3%. Vedanta, National Aluminium Company, and Hindalco each added over 1.5%. 

Buying in precious metals intensified through the session. MCX gold climbed ₹9,206, or 6%, to ₹1,62,648 per 10 grams. MCX silver jumped ₹16,743, or 6%, to ₹2,95,805 per kilogram. Both contracts hit their 6% upper circuits. 

Why Did Gold and Silver Prices Rise Today? 

The government revised the import duty structure on precious metals, imposing a 10% basic customs duty along with a 5% Agriculture Infrastructure and Development Cess (AIDC) on gold and silver imports. The total effective levy now stands at 15%. 

The revised duties took effect on 13 May 2026. The measures are aimed at curbing excessive bullion imports and reducing pressure on India’s foreign exchange reserves amid rising global uncertainties. 

The revised structure applies to gold, silver, platinum, jewellery findings, and industrial imports linked to precious metals. The government also raised import duties on gold imported from the United Arab Emirates under the fixed-quantity quota mechanism, which previously attracted concessional rates. 

What Is the Wider Policy Context? 

The duty hike comes as geopolitical tensions in West Asia remain elevated. Prime Minister Narendra Modi has urged citizens to adopt austerity measures, including delaying discretionary gold purchases and cutting down on foreign travel, as authorities work to shield the economy from the wider impact of the conflict. 

India’s gold imports have risen sharply over recent years. Imports surged more than 24% to a record USD 71.98 billion in 2025-26, compared with $58 billion in the previous financial year. Imports stood at $45.54 billion in 2023-24 and $35 billion in 2022-23. 

India remains the world’s second-largest gold consumer after China, with demand driven largely by the jewellery industry and household investments. Gold is widely viewed as a safe-haven asset during periods of uncertainty. 

What Does This Mean for India’s Trade Position? 

Higher bullion imports have widened pressure on India’s trade deficit and foreign exchange reserves. Gold currently accounts for more than 9% of the country’s total imports. 

Outlook 

The revised duty structure is expected to raise the landed cost of imported bullion. The policy aims to ease pressure on India’s foreign exchange reserves and the rupee while moderating bullion demand. Market focus will remain on subsequent price action in gold and silver, and on the response of bullion-linked equities. 

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