Metals Sector Surges, but Hindustan Zinc and Jindal Stainless Lag Behind

The metals sector has emerged as one of the top-performing sectors in 2026, driven by a strong rise in metal prices and robust earnings growth. According to data from ACE Equity, Nifty Metal has risen 19.74% on a year-to-date basis.

Sunny Agrawal, head of fundamental research at SBI Securities, attributed the sector's performance to strength across both ferrous and non-ferrous segments.

Ferrous steel prices have increased by over 25% since December 2025, driven by safeguard duties, inventory restocking, and improving market sentiment. Non-ferrous players have benefited from a sustained rally in LME aluminium, copper, and zinc prices due to robust demand from structural themes such as electrification and renewable energy.

However, despite the strong performance of the sector, Hindustan Zinc and Jindal Stainless have remained laggards, with losses of 3% and 16%, respectively. The two companies face unique challenges: Hindustan Zinc's profitability is driven by LME zinc and silver prices, which have declined sharply since January; while Jindal Stainless competes with cheap imports and lacks upstream integration.