Shares of metal stocks such as Tata Steel, Hindalco, Vedanta and Nalco saw gains on Monday as the Nifty Metal index rebounded after six consecutive sessions of declines.

What Happened: The recovery today comes as China’s Ministry of Finance announced the removal of export tax rebates on aluminium and copper products. This decision, effective from December 1, 2024, has led to a surge in aluminium prices, marking the largest increase in over a year.

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The policy change is expected to reduce Chinese aluminium exports, potentially tightening global supply and pushing prices higher. This is seen as a positive development for Indian aluminium producers like Hindalco Industries, Vedanta, and Nalco.

While Hindalco and Vedanta may benefit from increased global demand and improved pricing, Nalco is likely to gain from heightened domestic demand and expanded export opportunities.

Price Action: Nifty Metal Index was up 1.71%, closing at 8,980.05. Here is how metal stocks traded on Monday afternoon

Tata Steel’s share price was up 1.61% to trade at ₹140.20.
Vedanta’s share price rose 3.71% to ₹449.50.
Hindalco Industries’ share price gained 4.13% to ₹653.25.
National Aluminium Company’s share price surged 9.90% to ₹241.64.

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