MUMBAI, October 28, 2025 (GMT+5:30) – Indian metal stocks emerged as the standout performers in Tuesday’s trading session, buoyed by growing optimism that the United States and China are moving closer to a formal trade agreement that would avert a further escalation of their protracted tariff war.
The Nifty Metal index (CNXMETAL) (Check Current The Nifty Metal status Index )surged 1.2%, making it the top gainer among the 16 major sectoral sub-indexes. The rally was broad-based, with major players like Jindal Steel and Power Ltd. (JINDALSTEL) and Tata Steel Ltd. (TATASTEEL) leading the charge, climbing 2.9% and 2% respectively.
The bullish sentiment stems from reports that U.S. and Chinese trade officials have finalized a preliminary framework for their presidents to consider later this week. The proposed deal is understood to include a halt on planned heavier U.S. tariffs and, crucially, a commitment from China not to implement export controls on rare earth minerals.
“This is a significant de-escalation that the market has been craving,” said a senior analyst at a Mumbai-based brokerage. “The threat of Chinese rare earth controls was a sword of Damocles hanging over the global metals and technology sectors. Its removal, even temporarily, removes a major layer of uncertainty and is a clear positive for industrial metals.”
The potential truce in the trade war, which has dampened global economic growth and demand for industrial commodities, provided a fresh catalyst for the metal sector. Investors cheered the prospect of a more stable international trade environment, which could bolster demand for metals like steel, aluminum, and copper from India’s manufacturing and export sectors.
Adding to the positive momentum, domestic brokerage Motilal Oswal upgraded its rating on Tata Steel to “buy” from “neutral,” citing a strong and resilient domestic outlook that complements the improved global sentiment.
The metal index’s strong performance is part of a longer-term trend. Year-to-date, the Nifty Metal index has soared 22.25%, significantly outpacing the benchmark Nifty 50 index, which has delivered a respectable but lesser 9.5% return over the same period. This underscores the sector’s recovery and the market’s confidence in its growth prospects, driven by both domestic infrastructure spending and now, renewed hope for global trade normalization.
Disclaimer: Not a SEBI Registered Analyst
I am not a SEBI Registered Investment Adviser or Research Analyst. All information shared is for educational and informational purposes only and is not intended as a substitute for professional financial advice. All opinions expressed herein are based on my personal observations and research. They do not constitute a recommendation or a solicitation to buy, sell, or hold any security. Investments in the securities market are subject to market risks. The value of investments may go up or down. Past erformance is not indicative of future results.
You are solely responsible for your own investment decisions. You should conduct your own research and consult with a qualified financial advisor before making any investment based on the information provided here.
I may or may not hold positions in the securities mentioned. This is a personal blog/platform, and I have no relationship with the companies mentioned unless explicitly stated – Editor
Visit https://inworldnews.com/ for more