Shares of metal companies rallied sharply today, pushing the Nifty Metal index up over 1% to a fresh 52-week high of 11,652.70, as a surge in global copper and aluminium prices triggered broad-based buying across the sector. The rally was driven by renewed concerns over supply security, geopolitical tensions and expectations of sustained structural demand for critical metals.

Copper prices climbed to an all-time high of $13,253.50 per tonne on the LME, fuelled by fears of supply shortages and heightened uncertainty around critical mineral sourcing, particularly amid developments in Venezuela. According to market participants, metals are increasingly being viewed through the lens of strategic security and supply-chain resilience. Analysts also cited supportive macro factors, including the US Federal Reserve’s December rate cut, persistent supply-side tightness and expectations of further sectoral tariffs, which continue to underpin optimism for base metals. Aluminium prices also firmed up on expectations of tightening supply and strong long-term demand linked to energy transition and infrastructure spending.

The strength in global metal prices translated into sharp gains across domestic metal stocks. Hindustan Copper rose about 4% to hit a fresh 52-week high of Rs 574.60, extending its strong momentum with gains of over 8% in the past five days, more than 55% over the past month, and over 106% in the last six months. Hindalco Industries advanced over 4% to a new 52-week high of Rs 970.80, taking its gains to nearly 17% over the past month, 38% in six months, and 67% over the past year. NALCO climbed around 6% to a fresh 52-week high of Rs 350.35, with the stock up nearly 11% in five days, over 30% in a month, and about 85% in the last six months.

Market participants believe the ongoing rally reflects a combination of global supply constraints, improving demand visibility from energy transition and infrastructure themes, and sustained investor interest in metal producers as beneficiaries of the evolving global critical-minerals landscape.