Metal Stocks Rise Up to 3% as Hind Zinc, Tata Steel Lead Gains; Vietnam Duty Among Key Drivers

Metal Shares Rise Up to 3% as Hindustan Zinc, Tata Steel Lead Sector Rally on Global and Domestic Boosters

Metal shares extended strong gains on November 13, climbing up to 3 percent as the Nifty Metal index moved firmly higher amid a combination of favourable domestic and global triggers. Stocks such as Hindustan Zinc, Vedanta, Tata Steel and several other frontline metal counters witnessed renewed buying interest, helping the sector outperform broader indices in the mid-session trade.

By 12:12 pm, the Nifty Metal index was trading 1.3 percent higher at 10,679, supported by sentiment around the reopening of the US government, India’s decision to impose anti-dumping duties on steel imports from Vietnam, and renewed optimism over a potential Fed rate cut in December.

US Government Reopening Lifts Global Risk Appetite, Supports Metal Shares

One of the biggest sentiment boosters for metal shares came from the United States, where President Donald Trump signed legislation ending the country’s longest-ever government shutdown. The reopening is expected to immediately resume the flow of critical US economic data—including payrolls and inflation—which had been halted since October 1.

Economists noted that fresh data will give the Federal Reserve clearer visibility ahead of the December policy meeting, strengthening expectations of a 25 bps rate cut.

Market analysts told Reuters that the reopening “clears the fog” for traders, allowing global commodities and equities—including metal shares—to respond more confidently to economic signals. Lower interest rates in the US also tend to support demand for metals, making the environment more favourable for producers such as Tata Steel, Hindustan Zinc, and JSW Steel.

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Silver Hits Record High, Boosting Hindustan Zinc Share Price

COMEX December silver prices surged to an all-time high of $54.42 per ounce, driven by growing bets on a more accommodative Federal Reserve. This spike directly benefited Hindustan Zinc, India’s only integrated and listed silver producer. The Hindustan Zinc share price rose 3 percent, making it the top gainer in the Nifty Metal index.

Investors expect continued strength in precious metals if the Fed adopts a softer stance on interest rates, adding to the positive sentiment around the stock.

Vietnam Steel Duty Strengthens Domestic Steel Outlook

Another major tailwind for metal shares came from the Indian government’s decision to impose a five-year anti-dumping duty on certain steel products imported from Vietnam. The move aims to protect Indian steel manufacturers from injury caused by deep undercutting imports.

Vietnam exported close to 0.9 million tonnes of steel to India in FY25, accounting for nearly 10 percent of India’s total steel imports. The duty is expected to curb circumvention of cheaper Chinese steel routed through Vietnamese suppliers—a concern repeatedly flagged by domestic producers.

Although leading exporter Hoa Phat is reportedly exempt from the duty, analysts believe the government’s move signals a firmer stance against unfair imports. Shares of SAIL, JSW Steel, JSPL, and Tata Steel responded positively, rising between 0.75–1.8 percent.

The Tata Steel share price was also supported by the company’s impressive four-fold jump in Q2 profits, driven by robust demand in Europe (Netherlands) and India.

Fed Rate-Cut Hopes Add Fresh Momentum to Metal Shares

A Reuters poll of global economists indicated that 80 percent expect the Federal Reserve to cut rates next month. Metals historically perform well during low-interest-rate periods due to improved liquidity and economic activity.

Additionally, news of Atlanta Fed President Raphael Bostic stepping down sparked speculation of a more dovish replacement, which further boosted sentiment in global commodity markets.

Market strategists observed that with US data only now resuming after the shutdown, investors face a temporary “blind window.” However, once fresh data is released, the case for a December rate cut could strengthen significantly, supporting global metal prices and keeping Indian metal shares buoyant.

Record-Low India Inflation Strengthens Domestic Market Outlook

Adding another positive layer to the rally, India’s retail inflation rate cooled to a record low of 0.25 percent in October, driven by lower GST rates and softer food prices. This marks the lowest CPI print in the 2012 series and gives the Reserve Bank of India ample room to consider cutting rates in its next policy meeting.

Lower inflation and potential monetary easing typically boost infrastructure spending and industrial activity—both critical demand drivers for steel and metal producers.

Metal Shares Poised for Continued Upside as Multi-Factor Boost Aligns

With multiple tailwinds—US government reopening, optimism over Fed rate cuts, anti-dumping duties on Vietnam steel, rising silver prices, and benign inflation—analysts believe the metal shares rally could extend in the near term. The combination of strong global cues and supportive domestic policies has positioned metal stocks favourably, especially those with exposure to export markets and domestic infrastructure cycles.

As investors digest these developments, leading stocks like Hindustan Zinc, Tata Steel, and Vedanta are expected to remain in focus, riding the positive sentiment wave across the sector.

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