Indian Metal Stocks Surge on Record-High Copper Prices, Government Incentive Scheme

Metal stocks in India surged on Wednesday, September 23, driven by a rise in copper prices to an all-time high. The Nifty Metal index rose 1.5% to touch an intraday high of 13,184.40 points, with some metal companies like Welspun Corp., Vedanta, and Hindustan Copper gaining up to 4%. Copper futures in the US hit $6.92 per pound, a 4.6% increase in five market sessions.

The higher copper prices have boosted revenues and margins for metal producers due to their ability to sell output at a higher rate. Lower energy costs also contributed to the sector's growth, as oil prices declined to $97.93 per barrel on Tuesday evening amid hopes of a potential peace deal with Iran.

The central government plans to launch an incentive scheme to boost domestic production of lithium and nickel, which was announced by the Secretary of the Ministry of Mines at the 60th AGM of the Federation of Indian Mineral Industries (FIMI). This move aims to reduce dependence on imports of these materials from foreign countries.