Metal stocks have seen a significant rally recently, with the shares of Adani Enterprises, Hindalco Industries, Vedanta and others jumping up to 11% in a week and pushing the Nifty Metal index 4% higher despite overall market volatility. However, analysts advised patience, suggesting that investors should use any dip to accumulate instead of chasing the momentum blindly, while listing out stocks to buy.
The sharp rally in metal stocks was driven by multiple tailwinds. Gold and silver saw their prices soar after the government increased import duty on the precious metals to 15%, in order to stop rupee’s free fall and moderate non-essential imports during a period of heightened global uncertainty linked to the Iran-US conflict.
