Metal stocks surged during the market hours on Wednesday, September 23, as investors focused on the elevated commodity prices amid a mining policy update from the central government. Shares of Welspun, Vedanta, Hindustan Copper, SAIL, and Hindustan Zinc rose up to 4%, supporting the sectoral benchmark Nifty Metal index during the trading session. The rally was driven by copper prices hitting a fresh all‑time high, which attracted buying interest across the sector.

NSE data showed that the Nifty Metal index rose 1.5% to touch an intraday high of 13,184.40 points on Wednesday’s market, in comparison to 12,990.35 points at the previous equity market close. As of the morning market hours, Nifty Metal was trading 1.2% higher at 13,166 points during the trading session on Sept. 23. Stocks like Steel Authority of India (SAIL), Welspun Corp., Vedanta, and others led the pack of gainers.

Investors were primarily focused on the momentum from copper metal prices, which have successfully risen for the 7th consecutive trading session amid persistent demand and production and supply chain disruption scenario in the market. Lower copper production in major exporting countries like Indonesia and DRC due to operational incidents reduced total output, creating supply constraints that have been supporting prices.

Data showed that Copper futures in the US touched an all‑time high of $6.92 per pound, rising around 4.6% in the last five market sessions. Metal and mining companies benefit from these elevated price levels, as the higher rate of the commodity directly results in margin gains, with companies selling their production output at a higher price. Higher global prices also benefit revenues and margins, acting as a positive momentum trigger for the stocks.

Along with the surging metal prices, lower energy costs in the market also acted as a positive trigger for metal stocks, as the pullback in crude oil prices helps reduce the logistical costs of these heavy metal producers. Oil prices declined to $97.93 per barrel (bbl) on Tuesday evening amid hopes of the United States potentially meeting with Iranian officials to discuss a peace deal with the help of Oman as a broker.

At the 60th AGM of the Federation of Indian Mineral Industries (FIMI), the Secretary of the Ministry of Mines, Keshav Chandra, announced that the central government will soon announce an incentive scheme to boost the domestic production of lithium and nickel. He said, “Very soon we will be launching our scheme for lithium and nickel.” The Mining Secretary also raised concerns over the mining blocks which remain non‑operational, while highlighting that four states—Gujarat, Maharashtra, Odisha, and Andhra Pradesh—have successfully prepared for critical mineral processing, a move that acts as a positive momentum trigger for the entire metals and mining sector.