Multiple Vedanta group companies traded in positive territory during early trading on Thursday, August 20, with the sector showing sustained momentum. According to reports from The Economic Times, Hindustan Zinc (HZL) shares were up 2.24% at ₹569.50 on the NSE, while Vedanta Ltd was trading 2% higher at ₹267.90. The positive momentum extended across the group's portfolio, with Vedanta Aluminium Metal gaining 1.86% at ₹444.30 and Vedanta Power rising over 1.17% at ₹36.29. Additionally, Vedanta Iron and Steel shares traded 2.85% higher at ₹37.14 on the NSE. Latest data shows the sector has delivered more than 4% returns in the last one-month period, outperforming the broader market indices.
The broader metals sector has shown exceptional performance with the NIFTY METAL index trading in green territory at 13,027.10 around 9:46 AM, as reported by The Economic Times. After the trading session on Friday, August 21, Nifty Metal ended 0.86% higher at 13,172.60 points, compared to ₹13,060.25 points at the previous market close. 14 out of 15 constituents in the NIFTY METAL index were trading in positive territory, with 14.3% returns in the last one-month period compared to NIFTY50's 0.2% gains. The rally is driven by global commodity prices surge amid supply disruption, falling inventories and higher demand amid the West Asia conflict. Global copper prices surged more than 2% on Friday, with the commodity gaining nearly 5% in the last three months and almost 1% in the past one-month period. Aluminium prices in London were trading more than 1.4% higher on August 21, with 2% gains in the last one-month period, while Steel gained 1.4% in the last one month and Zinc prices rallied 7.3% in the same period.
Latest trading data shows strong performance across metal stocks with Welspun Corp leading gains at ₹2,291 with 17% intraday returns and 40.6% one-month returns. Vedanta Ltd traded at ₹279 with 4.3% intraday gains and 5.3% one-month returns. Hindustan Zinc was priced at ₹595 with 3.9% intraday returns and 11.3% one-month returns. Hindustan Copper traded at ₹573 with 3.8% intraday gains and 16.3% one-month returns. National Aluminium was priced at ₹394 with 2.9% intraday returns and 15% one-month returns. Vedanta Aluminium traded at ₹440 with 2% intraday gains and -0.1% one-month returns, while Vedanta Iron & Steel was priced at ₹36.70 with 4.4% intraday returns and 12.8% one-month returns. Several metal and mining companies, including Tata Steel, SAIL, Vedanta Aluminium, and Hindustan Zinc, recorded healthy profit growth due to higher market prices.
India's metals and mining sector is positioned for strong growth supported by favorable government policies and initiatives. According to an article by India Brand Equity Foundation (IBEF), the Union Budget FY27 measures, critical mineral focus, and increased investments are boosting domestic production and reducing import dependence. The National Critical Mineral Mission (NCMM) launched on April 9, 2025, aims to strengthen India's critical minerals sector through 1,200 exploration projects, faster approvals, private participation and processing infrastructure. Looking ahead, Saikat Kumar from Red Lions Capital DIPMarket noted that metal and mining companies have entered FY2026-27 with improved fundamentals and strong recovery from the previous quarter, though near-term pressures remain. Harshal Dasani from INVAsset PMS emphasized that investors should focus on input cost trajectory, aluminium price sustainability, China's production and export behaviour, and domestic demand from infrastructure push. The sector has delivered more than 146% returns to investors in the last five years, over 100% gains in the last three years, and more than 38% returns in the past one-year period.
India's metals production continues to show strong growth across key segments. As reported by The Economic Times, India is expected to surpass its steel production capacity target of 300 MT by 2030, reaching an estimated 330 MT. The country maintains its position as the second-largest producer of aluminium globally, with primary aluminium production reaching 7.07 lakh tonnes in FY26 (April-May 2025) from 6.98 LT in FY25 (April-May 2024). Iron Ore production for October 2025 was 24.8 million tonnes compared to 22.9 million tonnes for October 2024, while cumulative production for FY26 (April-October 2025) reached 156.6 million tonnes. Steel safeguard duty extended to April 2028 lifted domestic HRC prices 14% QoQ in Q4 FY26, with spot prices running ₹3,000-5,000/tonne higher into Q1. LME aluminium hit four-year highs ($3,700/t) on Middle East supply disruption due to naval blockade sidelining ~9% of global supply.
