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Informist, Friday, Mar. 27, 2026

MUMBAI – Stocks in the metal sector are expected to move sideways next week as the war in West Asia has led to volatility in the market. Traditionally, the March quarter is better for metal companies due to higher demand during the period, but the war is likely to weigh on the margins of these companies due to higher input costs.

"While the March quarter is traditionally a peak period for domestic demand, the war has shifted the focus from volume growth to margin volatility and supply chain survival," Amit Gupta, senior research analyst at Kedia Advisory, said. Logistics and energy costs are expected to be the biggest headwinds for metal companies. Freight and insurance surcharges for routes near the Strait of Hormuz are being passed down to companies, which will increase the "landed cost" of raw materials, Gupta said.

On Friday, the Nifty Metal index ended at 11161.65 points, down nearly 2%. Barring Hindustan Copper and National Aluminium Co., all the other index constituents ended lower. Steel Authority of India and Adani Enterprises ended more than 3% lower each and were the worst hit in the index.

The ongoing profit-taking in the Nifty Metal index took a halt around its 200 exponential moving average on daily charts, said Vipin Kumaar, senior technical and derivatives analyst at Globe Capital Market. "Going ahead, we expect it to trade sideways with positive bias and likely to reclaim its all-time highs in near term," Kumaar said. Support for the Nifty Metal is expected at 10600–10650 points while resistance is expected at 11800 points, he added.

Aluminium producers like Hindalco Industries and NALCO have seen a boost in sentiment as supply disruptions at West Asian smelters have pushed prices higher on the London Metal Exchange, according to Gupta. Aluminium prices have risen around 3.8% to $3,250 per tonne. "This often translates to better realisations," Gupta added.

Steelmakers face a margin squeeze due to rising input costs, Gupta said. "There are reported shortages of critical inputs like Direct Reduced Iron and limestone," he said. If the West Asian conflict persists, many Indian plants are likely to shift to natural gas to reduce carbon footprints. "High LNG (liquefied natural gas) prices and supply uncertainty from Qatar could stall these green initiatives," Gupta said.

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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:

End

US$1 = INR 94.81

Reported by Adhithya Aji 

Edited by Ashish Shirke

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