Metal stocks were trading higher on November 13 as multiple positive developments lifted investor sentiment. Key drivers included the US government reopening, India’s anti-dumping duty on Vietnam steel products, optimism over a Federal Reserve rate cut, and record-low domestic inflation data.

At 12:12 pm, the Nifty Metal index was up 1.3% at 10,679, with major gainers including Hindustan Zinc (+3%), Vedanta (+2.5%), and Tata Steel (+1.8%).

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1. US Government Reopens, Boosting Global Sentiment

US President Donald Trump signed legislation ending the longest US government shutdown, which had started on October 1. The move cleared the backlog of crucial economic data and improved investor confidence.

The reopening revived expectations of a December interest rate cut by the Federal Reserve, providing a positive backdrop for global equities and commodities. Economists noted that the resumption of payroll and inflation data releases would give policymakers better clarity ahead of the next Fed meeting.

2. Silver Prices Hit Record High, Lifting Hindustan Zinc

On the COMEX exchange, the December silver contract surged to a record $54.42 per ounce as traders focused on the Fed’s rate outlook post-shutdown. This supported Hindustan Zinc, India’s only integrated and listed silver producer, whose shares rose 3%.

3. India Imposes Anti-Dumping Duty on Vietnamese Steel

The Indian government imposed a five-year anti-dumping duty on certain steel products originating from Vietnam, citing injury to the domestic industry.

Vietnam exported 0.9 million tonnes of steel to India in FY25, accounting for 10% of total imports. Analysts said the decision aims to curb Chinese steel circumvention through Vietnam.

While the largest Vietnamese steel producer, Hoa Phat, remains exempt, the move is expected to support Indian steelmakers. Shares of SAIL, JSW Steel, JSPL, and Tata Steel were up 0.75% to 1.8%.

4. Optimism Over Fed Rate Cut Supports Metals

Market expectations for a 25 basis point Fed rate cut in December rose, with 80% of economists polled by Reuters predicting the move.

Metals tend to perform well in low-interest-rate environments. Analysts suggested that the reopening of the US government and easing inflation data strengthened the case for a rate cut, creating a “risk-on” sentiment in global markets.

5. Record-Low Retail Inflation in India

India’s retail inflation (CPI) dropped to a record low of 0.25% in October, down from 1.44% in September and 6.21% in October 2024. The fall was driven by GST rate cuts on 380 mass-consumption items and lower food prices.

This sharp decline gives the RBI room to potentially cut rates next month, providing further support to rate-sensitive sectors like metals.

Stock Performance Snapshot

Hindustan Zinc: +3%
Vedanta Ltd: +2.5%
Tata Steel: +1.8%
SAIL, JSW Steel, JSPL: +0.75%–1.8%

The combined impact of supportive global signals, policy measures, and low inflation strengthened the overall outlook for the metal sector in Thursday’s trade.

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