Metal Stocks Jump After India Hikes Import Duty on Gold, Silver and Other Metals: Hindustan Zinc Up 5.4%, Vedanta Up 3%, NALCO Gains on 13 May 2026

Metal stocks across the NSE and BSE surged sharply on 13 May 2026 after the Finance Ministry, through a notification effective immediately, hiked the social welfare surcharge (SWS) and the agriculture infrastructure and development cess (AIDC) on gold and silver, raising the total customs duty on precious metals to 15 percent from the earlier 6 percent. The Nifty Metal index jumped over 1 percent, outperforming the broader Nifty 50 sharply as the index approached within 2 percent of its 52-week high of 13,256.20.

The duty hike follows Prime Minister Narendra Modi’s appeal, made just two to three days ago, urging citizens to voluntarily avoid gold purchases for a year and reduce precious metal consumption to protect India’s foreign exchange reserves amid the West Asia conflict. The Finance Ministry’s action converts that voluntary appeal into a structural policy measure that directly raises the price of imported gold and silver, creating immediate earnings tailwinds for India’s domestic producers of these metals.

Metal Stocks Performance on 13 May 2026: Stock-wise Breakdown

• Hindustan Zinc (NSE: HINDZINC): Up 5.43% to Rs 676.80 intraday. Top performer among all metal stocks today. Direct beneficiary as India’s largest silver producer.
• Vedanta (NSE: VEDL): Up approximately 3% to Rs 313.95. Parent company of Hindustan Zinc with direct zinc, silver and copper exposure.
• Hindustan Copper (NSE: HINDCOPPER): Up approximately 3% to Rs 586.80. India’s only integrated primary copper producer.
• NALCO / National Aluminium Company (NSE: NATIONALUM): Up 1 to 3% to approximately Rs 398. Government-owned aluminium producer at near 52-week highs.
• Hindalco Industries (NSE: HINDALCO): Up 1 to 2% to approximately Rs 1,050. India’s largest aluminium producer and parent of Novelis.
• Tata Steel (NSE: TATASTEEL): Up approximately 1 to 2% to around Rs 215.
• NMDC (NSE: NMDC): Up approximately 1% to Rs 87.85.
• Nifty Metal Index: Up over 1%, approaching 52-week high of 13,256.20. The index has gained 16 percent year-to-date in 2026, massively outperforming the Nifty 50’s 10 percent decline.

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Why the Import Duty Hike Is Driving Metal Stocks Higher

The Direct Silver Price Link: Hindustan Zinc’s Windfall

The most direct beneficiary among all metal stocks today is Hindustan Zinc, India’s largest and the world’s third-largest integrated zinc producer, with annual silver production capacity of 800 metric tonnes. When the domestic silver price rises by 10 percent due to the duty hike, Hindustan Zinc’s silver revenues rise proportionally at zero additional production cost. Silver contributes materially to Hindustan Zinc’s revenues and profits, making every silver price increase an immediate margin expansion event.

Darshan Rathod, COO of MULTYFI, notes that among all Indian metal stocks, Hindustan Zinc remains the most direct beneficiary of rising silver prices. Vedanta benefits indirectly through its majority stake in Hindustan Zinc, with the overall impact diluted by Vedanta’s broader exposure to aluminium, oil and other metals.

Why the Duty Hike Is Structurally Positive for Domestic Metal Producers

India currently imports significant quantities of gold, silver and other precious metals in US dollars. This import bill is one of the largest contributors to India’s current account deficit alongside crude oil. By raising import duties to 15 percent, the government achieves two simultaneous goals: it makes imported precious metals more expensive, reducing demand for imports, and it raises the domestic price of these metals, directly benefiting domestic producers who hold inventory or produce domestically without the import cost burden.

For the Nifty Metal index, the duty hike reduces the price competitiveness of imported metal products while simultaneously raising realisation prices for domestic producers of silver, zinc, copper and aluminium. This is a straightforward earnings positive across multiple metal stocks.

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Gold and Silver Duty Hike Details

• Previous Effective Duty: 5 percent basic duty plus 1 percent SWS and cess = approximately 6 percent total
• New Effective Duty: 15 percent total through SWS and AIDC increase, effective 13 May 2026
• Policy Authority: Finance Ministry notification, effective immediately
• Policy Rationale: Reduce India’s gold and silver import bill, protect forex reserves, strengthen rupee which hit record low of Rs 95.50 on 12 May 2026
• Trigger: West Asia conflict driving crude oil above $104 per barrel, expanding India’s current account deficit

Analyst Views on Metal Stocks After the Duty Hike

Ajit Mishra, SVP of Research at Religare Broking, recommends investors use any dips to accumulate quality metal stocks. Among the key picks, he highlights that Tata Steel and Hindalco remain well-positioned due to strong volume growth and favourable global pricing trends, while Hindustan Zinc is emerging as a key beneficiary of the silver price rally.

HSBC has a Buy call on Hindustan Zinc with a target price of Rs 720, noting that the company’s significant exposure to zinc and silver makes it fundamentally strong in the current environment. Nifty Metal index technical analyst Vatsal Bhuva of LKP Securities notes that the index holds a bullish structure with hidden bullish RSI divergence, and a breakout above 13,200 would trigger the next leg of buying momentum in metal stocks.

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Which Metal Stocks Are Best Positioned for the Duty Hike Rally

Hindustan Zinc: Maximum Direct Benefit

Hindustan Zinc is the clearest winner from the import duty hike on silver. As the world’s third-largest silver producer with 800 MT annual capacity, a 15 percent domestic silver price increase goes directly to the revenue and margin line. The company’s market cap of Rs 2,71,223 crore reflects its dominant 75 percent market share in India’s zinc market and its growing silver contribution. At a PE of 12.1 times book value with promoter holding at 60.7 percent, Hindustan Zinc combines fundamental quality with the duty hike catalyst.

Vedanta: Indirect Benefit Through HZL Stake

Vedanta holds a majority stake in Hindustan Zinc and benefits from the silver price rally through dividend income and mark-to-market value accretion. Vedanta’s own Q4 FY26 net profit surged 92.31 percent year-on-year to Rs 6,698 crore, providing a strong earnings base. The stock trades at 4.70 times earnings with an 11.13 percent dividend yield, making it one of the most attractively valued large-cap metal stocks on the NSE.

NALCO: Aluminium Play Near 52-Week High

National Aluminium Company is a government-owned aluminium smelter and miner. NALCO shares reached a 52-week high of Rs 439.95 on 17 April 2026 and have risen 17 percent in the past month. While aluminium is not directly impacted by the precious metals duty hike, NALCO benefits from the broader Nifty Metal index rally and from India’s infrastructure spending cycle that drives aluminium demand for construction, power and transportation.

Conclusion

Metal stocks across the NSE and BSE are rallying on 13 May 2026 following the Finance Ministry’s import duty hike on gold and silver to 15 percent. Hindustan Zinc is the top performer with a 5.43 percent intraday gain, followed by Vedanta at 3 percent and Hindustan Copper, NALCO and Hindalco in the 1 to 3 percent range. The Nifty Metal index, already up 16 percent year-to-date and near its 52-week high, is showing sector leadership in what is otherwise a broadly weak market. Track live metal stock prices, intraday levels and analyst targets on Univest. Consult a SEBI-registered advisor before investing in metal stocks.

FAQs on Metal Stocks Rally Today

Why are metal stocks rallying today on 13 May 2026?

Ans. Metal stocks are rallying today because the Finance Ministry hiked the total import duty on gold and silver to 15 percent from 6 percent, effective 13 May 2026. This raises domestic precious metal prices by up to 10 percent, directly benefiting domestic producers like Hindustan Zinc and indirectly benefiting Vedanta, NALCO and other metal stocks through sector sentiment.

Which metal stock gained the most today?

Ans. Hindustan Zinc (NSE: HINDZINC) was the top-performing metal stock today, gaining 5.43 percent to Rs 676.80 intraday. As India’s largest silver producer and the world’s third-largest integrated zinc producer, Hindustan Zinc is the most direct beneficiary of the domestic silver price rally triggered by the 15 percent import duty hike.

What is the Nifty Metal index performance in 2026?

Ans. The Nifty Metal index has gained 16 percent year-to-date in 2026, significantly outperforming the Nifty 50 which has declined approximately 10 percent over the same period. The index is within 2 percent of its 52-week high of 13,256.20 touched on 7 May 2026.

Should investors buy metal stocks after today’s rally?

Ans. Analysts including Ajit Mishra of Religare Broking recommend using dips in quality metal stocks to accumulate. Hindustan Zinc, Vedanta, Hindalco and Tata Steel are top picks across multiple brokerages. However, metal stocks are volatile and the West Asia situation remains a key risk variable. Consult a SEBI-registered advisor before acting.

Disclaimer: Investment in the share market is subject to risk. This article is for informational and educational purposes only and does not constitute investment advice. Verify all numbers before investing. Consult a SEBI-registered advisor before making investment decisions.