Hindustan Copper, National Aluminium, and Jindal Steel were among the Nifty Metal constituents that continued to ride the bull wave in Thursday’s session on January 29, defying the broader market’s weak trend.
Sentiment toward metal stocks was bolstered by the record-breaking rally in base metal prices, supported by a weakening US dollar, rising demand for real, physical assets, and elevated geopolitical tensions as the Donald Trump administration adopts a more assertive foreign policy stance.
Among the top performers, Hindustan Copper topped the charts, surging 19% to a fresh all-time high of ₹743 apiece. National Aluminum emerged as the second-biggest gainer, climbing 3.8%, while Jindal Steel also advanced 3.6%.
Other index constituents, including Hindalco Industries, NMDC, Vedanta, Tata Steel, SAIL, and Hindustan Zinc, gained between 1% and 3%.
Tracking the strong rally across individual stocks, the Nifty Metal index scaled a new record high of 12,399, rising 2.42% and extending its record-breaking run to a fourth straight session.
The rally has also pushed the index up 10.60% in January so far, marking its best monthly performance since March 2025. The sector has significantly outperformed the Nifty 50, which has slipped 3.22% over the same period.
US dollar hovers near four-year low
Even as the US Federal Reserve left interest rates unchanged on Wednesday, weakness in the US dollar index persisted, with the greenback slipping another 0.26% to 96.02.
The currency had plunged 1.28% in Tuesday’s session to touch a four-year low of 95.55 after US President Donald Trump said he was not concerned about the dollar’s recent decline, adding that it had not fallen too much.
The dollar’s weakness was further driven by Trump’s remarks that he would soon announce his pick to serve as the next Federal Reserve chair, along with his prediction that interest rates would decline once the new head takes charge.
Adding to the pressure, growing speculation over a potential joint US–Japan currency intervention to support the yen weighed on the greenback. Treasury Secretary Scott Bessant later said the administration supports a stronger currency and ruled out intervention to sell the dollar against the yen.
The world’s reserve currency fell more than 9% in 2025, marking its steepest annual decline since 2017. Losses have extended into early 2026, with the dollar down another 2.3% so far, making precious and base metals cheaper for holders of other currencies.
Copper hits fresh record; aluminum at multi-year highs
Base metals extended their record run, with benchmark three-month copper futures rising as much as 6.7% to a fresh all-time high of $13,967 a tonne on the London Metal Exchange (LME), taking gains for the year to 12%.
Copper’s rally followed record highs in gold and silver, as investors rushed toward physical assets amid rising geopolitical risks. On Wednesday, US President Donald Trump threatened possible action against Iran if it failed to strike a deal on nuclear weapons.
Investors have been flocking, in particular, to metals critical to major growth markets.
Meanwhile, aluminum remained firm, with the most active contract rising 3.08% to 25,630 yuan a ton, while the London benchmark climbed 1.87%, trading at a 4-year high. Elsewhere on the LME, zinc surged 2.62%, lead gained 1.29%, nickel rose 2%, and tin advanced 1.54%.
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