Primary: Metal Stocks Outlook 2026: Why Top Brokerage Firms are Bullish
24, January 2026. By -Kaushik
The Indian metal sector has emerged as a powerhouse in early 2026, with the Nifty Metal index outperforming broader benchmarks. As global supply chains tighten and domestic infrastructure projects hit high gear, top brokerage firms have revised their outlook on metal stocks, signaling a potential multi-year upcycle.
Why Brokerages are Turning Bullish
Market analysts point toward a “perfect storm” of positive factors. Domestically, India’s renewed capital expenditure (Capex) push and safeguard duties on imports have protected local steel prices. Globally, the demand for “green metals” like copper and aluminum—essential for EVs and renewable energy—has reached a fever pitch.
Leading firms like Jefferies have recently upgraded earnings estimates for the sector. They anticipate a Compounded Annual Growth Rate (CAGR) of 6% to 9% for steel volumes through 2028. This optimism is mirrored by Motilal Oswal, which highlights that a post-monsoon demand recovery is likely to keep margins healthy for the remainder of the fiscal year.
Top Brokerage Picks & Target Prices
Based on recent consensus reports, here are the stocks leading the charts:
Stock Name Brokerage Sentiment Key Driver
Tata Steel Strong Buy (Target: ₹230) Recovery in Asian steel spreads and capacity expansion.
Vedanta Ltd Positive (Target: ₹800+) Diversified portfolio and progress on the demerger.
Hindalco Buy Global leadership in aluminum through its subsidiary, Novelis.
Hindustan Copper Bullish Tightening global supply and surging copper prices.
JSW Steel Outperform Focus on cost-control and aggressive volume growth.
The Non-Ferrous Advantage
While steel remains the backbone of the sector, non-ferrous metals are stealing the spotlight in 2026. Hindustan Zinc and Vedanta have benefited immensely from record-breaking silver prices, which recently crossed major psychological milestones on the MCX.
Brokerages like Systematix Institutional Equities note that non-ferrous companies are “doing the heavy lifting” for the sector’s profitability this year. The surge in base metal prices, fueled by geopolitical uncertainties and supply disruptions in major mining hubs, has provided these companies with significant pricing power.
Key Risks to Watch
Despite the optimism, experts advise a balanced approach. The primary risks include:
Global Interest Rates: Any delay in rate cuts by the US Fed could impact global commodity demand.
Input Costs: Rising energy prices can squeeze the margins of high-energy users like aluminum smelters.
Tariff Volatility: Changes in international trade policies, particularly in the US and EU, remain a wild card for exporters.
The Verdict for Investors
The brokerage firm’s najariya (perspective) for 2026 is clear: the metal sector is no longer just a cyclical play; it’s a growth story driven by decarbonization and nation-building. For WordPress bloggers and investors alike, the consensus suggests that while volatility is expected, the long-term trajectory remains upward.
Disclaimer :
This blog does not provide financial, investment, or trading advice. All content is for educational and informational purposes only. Please consult a certified financial advisor before making any investment decisions. The author will not be responsible for any financial losses incurred.
