Time to book profits in metals?

Nifty Metal is the best-performing sectoral index this year with gains of over 7.8% as of 10:19 am on April 8.  It may be a good time for investors to start booking profits, according to Rakesh Arora, Founder of GoIndiaStocks.com.

Aluminium prices, in particular, may have peaked, according to Arora. “Brokerages are hesitant to raise their assumptions beyond $3,000 (a tonne). If things normalise in West Asia

very fast, aluminium can go down to as low as $2,600 to 2,700, which would be a fair range for this metal. So, while there's euphoria, you hold on to the stocks, but maintain stop losses.”

Moreover, Indonesia may add more aluminium to the global supply in the first half of 2026. 

Shares of Hindalco, India's largest aluminium producer, are up 24% in the last six months despite the geopolitical tensions affecting global trade. 

Steel prices, too, are close to their peak, Arora argues, as domestic prices are now nearly at par with imports due to a shortage of key inputs, leading to production cuts and an increase in gas prices. 

A 9% fall in steel production in China over the last five months has also helped prices in India, which have risen by 6% in recent weeks, according to Jefferies, a multinational broking firm. 

Mining stocks like NMDC and MOIL, which have lagged other metal stocks, may start catching up now, Arora estimates. Integrated players expanding mining capacity will be able to manage costs better, even if steel prices soften.

For the entire discussion, watch the accompanying video



 

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