Metal stocks extended their winning streak for the third straight session today. The Nifty Metal Index surged over 2% in morning trade to touch a record high of 10,824.70, driven by optimism ahead of the US Federal Reserve policy meeting later today. The rally comes amid growing expectations that the Fed may signal a potential rate cut, improving the outlook for global growth and commodity demand.

The metal index has now gained over 4% in the past three sessions, led by buying interest in ferrous and non-ferrous majors on renewed hopes of stronger industrial activity and easing global borrowing costs.

Shares of Tata Steel, JSW Steel, Hindalco Industries, Vedanta, and NMDC were among the top gainers on the NSE, rising between 2 to 4%. Hindustan Copper, Jindal Stainless, and National Aluminium Company (NALCO) also advanced, benefiting from the rebound in global metal prices and softening US bond yields.

Though SAIL is also up today that’s mainly on account of its Q2FY26 announcement scheduled for today but it’s not a direct beneficiary of the probable rate cut. Its more like a defensive rotation.

A potential rate cut could benefit these companies because rate cuts and dollar weakness tend to lift base metal prices (aluminium, copper, zinc). Domestic macro indicators, including stable infrastructure demand and government capex momentum, also provide support to the sector.

However, any hawkish commentary or delay in rate cut signals could trigger profit booking at higher levels, given the sharp recent run-up and valuations now at near multi-year highs.