Metal Stocks Surge In Muted Market; Vedanta, Hindustan Zinc, Hindustan Copper Lead Gains — Here's Why

Metal stocks outperformed a muted equity market on Wednesday, with Vedanta Ltd, Hindustan Zinc Ltd and Hindustan Copper Ltd leading the gains as commodity prices surged to fresh record highs. While benchmark indices remained range-bound, the metals pack attracted strong buying interest, supported by a sharp rally in both industrial and precious metals.

In addition, industrial metals have started the new year on a strong footing, with tin, zinc and aluminium all registering gains.

On Wednesday, most metal stocks were in the green. While Vedanta and Hindustan Zinc rose over 6%, Hindustan Copper and NACL Industries were up nearly 5%. Tata Steel is all set to post biggest single-day gain since Sep. 2025.

Silver At Record High

Silver emerged as a key driver of sentiment, soaring past the $90 an ounce mark for the first time and hitting a record high amid heightened geopolitical tensions. The rally has been underpinned by a rising geopolitical risk premium linked to tensions involving Iran and the US capture of Venezuela's President Nicolás Maduro.

Uncertainty around potential US tariffs on white metals, with clarity awaited by June, has added to price momentum, while supply concerns remain acute, with silver facing its sixth consecutive year of supply deficit.

The sharp rise in prices has pushed silver's market capitalisation beyond $5 trillion, placing it among the world's largest assets by value. By comparison, gold's market capitalisation stands at $32.17 trillion, while Nvidia is valued at $4.52 trillion, Alphabet at $4.06 trillion and Apple at $3.85 trillion. Silver prices have surged 14.5% over the past week, are up 23% year to date and have climbed 35% over the past month.

Copper At Record High

Copper has also scaled fresh record highs, extending its rally on the back of strong demand linked to the artificial intelligence boom. The metal's growing use in data centres and electronics has emerged as a key demand trigger. Adding to the momentum, Beijing's metal markets have been gripped by a speculative frenzy, with trading values in Shanghai jumping more than 260% from a year earlier. Copper has moved above $13,000 a tonne, while nickel, zinc and aluminium have also logged gains. Over the past week, copper prices have risen 2.1%, while the metal is up 12.1% over the past month.

The sharp rally across metals has directly benefited listed producers, with Vedanta, Hindustan Zinc and Hindustan Copper emerging as clear winners in the session, as investors position for continued strength in commodity prices.