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Informist, Friday, Jan. 16, 2026

MUMBAI – Investors will likely turn their focus on December quarter earnings of metal and mining companies in the near term. Some analysts expect the upgrades in earnings estimates of these companies as base metal prices are likely to stay higher amid supply-side constraints and global policy uncertainties. In the coming week, Hindustan Zinc, JSW Steel, and Jindal Stainless will declare their results next week.  

In the December quarter, companies from the metals sector are expected to benefit from higher sales realisations and lower input costs compared with the year-ago quarter. Higher commodity prices will drive the top line of non-steel metal companies, while steel companies will benefit from strong volume growth on year. 

Steel major, JSW Steel's consolidated net profit is expected to rise over 16% on year and its sales are seen increasing nearly 8% on year. "Higher volumes and backward integration to drive margin expansion this quarter, supported by moderately higher performance at overseas subsidiaries," Systematix Shares and Stocks (India) commented about JSW Steel's Oct-Dec results. Hindustan Zinc's net profit is expected to jump over 31% and its sales are seen rising nearly 19%, according to the average of six brokerage estimate. The Street estimates the company to benefit from the rise in prices of zinc and silver. JSW Steel will declare results on Jan. 23 and Hindustan Zinc will declare results on Monday. 

On Friday, the Nifty Metal index ended lower by 61.35 points, or 0.5%, at 11600.05 points. The metal index rose to its record high of 11729.65 points. "We are still bullish on metal index (Nifty Metal) and suggest traders to continue with the buy on dips trading approach," said Vipin Kumaar, assistant vice president – technical and derivatives at Globe Capital Market. The index is seen seeking support at 11300-11050 points and face resistances at 12000 points. 

In a monthly update, Elara Capital said hot roiled coil steel prices appear to be approaching a near-term cyclical bottom, after touching a five-year low early December. Seasonal demand recovery, coupled with the recently announced safeguard duty, suggests that a near-term price trough is likely to form in Oct-Dec, the brokerage said. That said, excess domestic supply may cap pricing power for steel producers, limiting the extent of any major earnings upgrades, the broking firm said. In contrast, aluminium fundamentals remain stronger, supported by the limited scope for incremental production in China and firm copper prices.

Emkay Global Financial Services in a report said the ongoing strength in industrial metals and equity rally are underpinned by supply-side trends, with two key factors aligning at the same time. Supply tightness across industrial metals complex and rise in energy cost, which lifted the cost curve, resulting in higher incentive prices required to bring out new supply are the two factors contributing to the present rally. 

"Importantly, we believe the upcycle is still at an early stage, with meaningful upside ahead," Emkay said. While non-ferrous equities have rallied in recent months, strengthening earnings momentum and improved margin and cash generation visibility hint at further re-rating potential, with non-ferrous names such as Vedanta, National Aluminium Co, and Hindalco Industries offering direct exposure.

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Following are the resistance and support levels for key metal stocks for next week as per calculations based on their prices on the National Stock Exchange:

Reported by Gopika Balasubramanium

Edited by Akul Nishant Akhoury

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