Metal stocks continue to rally as silver and copper hit record highs; Vedanta, Hindustan Zinc surge

Mumbai | January 14

Metal stocks have extended their rally for the third consecutive trading session as a sharp rise in global copper and silver prices boosted sentiment across the sector. The Nifty Metal index rose over 2% during the session, with most of its constituents trading in the green.

Vedanta jumped over 6% to hit a fresh record high, while Hindustan Zinc surged around 6% and Hindustan Copper gained nearly 4%. The rally was driven by a combination of higher global metal prices, supply-side disruptions, and expectations of stronger realisations for producers.

Silver prices hit record highs

Silver prices surged to new all-time highs in both domestic and international markets. On the Multi Commodity Exchange (MCX), March silver futures climbed to a record ₹2,83,725 per kilogram. In global markets, spot silver breached the $90 per ounce mark for the first time, touching a peak of $91.53 on COMEX.

Copper prices strengthened

Copper prices also strengthened sharply. Benchmark three-month copper contracts on the London Metal Exchange hit a record high of $13,400 per tonne, supported by mine disruptions, tight inventories and steady demand from energy transition and infrastructure projects.

Persistent supply concerns and resilient demand have kept prices of base metals and precious high continuously.

Why Vedanta and Hindustan Zinc are in focus

Vedanta’s sharp rise was driven by its diversified exposure to metals that are currently witnessing strong price momentum. The company has significant presence across aluminium, zinc, oil and gas, iron ore and power, making it a key beneficiary of a broad-based commodity upcycle.

Vedanta is the parent company of Hindustan Zinc. Rising silver prices directly benefit Hindustan Zinc, one of India’s largest silver producers, and improve earnings visibility for the group. Silver contributes a meaningful share to Hindustan Zinc’s profitability, making the stock particularly sensitive to movements in the white metal.

Apart from that, Vedanta was also in focus earlier this month after the National Company Law Tribunal (NCLT) approved the company’s proposed restructuring plan. The approval clears the way for the demerger of Vedanta’s businesses into separate listed verticals, a move aimed at simplifying the group structure and unlocking value across its metal, mining and energy operations.

Hindustan Copper also gained 4% as higher copper prices improve realisations at a time when global supply remains constrained.

Broader metal pack joins the rally

The rally was extended across the sector. Shares of NALCO rose about 2.5%, Hindalco gained around 1.4%, while Steel Authority of India advanced nearly 1.5% during the session.

Over past one year, the Nifty Metal index has gained over 40%. Analysts said sustained strength in global metal prices, coupled with supply disruptions and improving demand outlook, continues to support metal stocks.

For now, investors remain focused on global commodity trends, inventory levels and geopolitical developments, which are likely to shape near-term movement in metal prices and related stocks.

For more market-related updates, follow PL Capital.