The new year 2026 has begun with a robust foundation for commodity markets, extending the powerful upward trend established throughout 2025. Key industrial and precious metals are trading at significantly higher levels, setting a positive tone for the earnings of metal-producing companies in India.
Current Market Snapshot: Metals Hold Firm Ground
On the Multi Commodity Exchange (MCX), copper is currently trading in the range of ₹1,270 to ₹1,300 per kilogram. This follows an impressive surge of approximately 42% to 48% witnessed in the previous year. Meanwhile, silver is consolidating between ₹2.35 lakh and ₹2.39 lakh per kg, a remarkable position after an extraordinary rally of 150% to 180% over the past two years.
Gold, after a prolonged multi-year uptrend supported by central bank purchases and geopolitical uncertainties, has entered a phase of consolidation. However, it continues to trade at historically high levels. In recent trading, MCX gold February contracts gained 0.69% to settle at ₹1,36,742 per 10 grams. Silver outperformed, jumping 1.9% (₹4,600) to ₹2,40,500 per kg. Copper prices, after a bullish rally, remained relatively flat, closing 0.28% lower at ₹1,288.85 per kg.
The Driving Forces Behind the Metal Rally
Market experts emphasize that the strength in silver and copper is not a short-term cyclical event but is driven by deep-seated structural demand. Silver continues to grapple with multi-year supply deficits, while its industrial demand from solar panel installations, electric vehicles (EVs), electronics, and AI-related applications is expanding at a rapid pace of 20–25% in key segments.
Similarly, copper demand is accelerating due to global electrification, renewable energy projects, EV charging infrastructure, and the power needs of AI data centres. This has led to projected global supply deficits in the range of 120,000 to 150,000 tonnes for the 2025-26 period.
Rajeev Sharan, Head of Criteria, Model Development & Research at Brickwork Ratings, contextualized the surge. He stated that the 2025 rally in gold, silver, and copper signalled deeper economic shifts, including a move away from the US dollar as a reserve asset and the energy transition becoming a supply-constrained reality.
Investment Perspective: Which Metal Stocks to Watch in 2026?
Ponmudi R, CEO of Enrich Money, explains that sustained high metal prices are now translating into significantly improved earnings visibility for producers. The investor focus is shifting from pure price momentum to sales growth, margins, and quarterly results.
He highlights the power of operating leverage: for pure-play producers, a sustained 10% rise in silver or copper prices can lead to a 6–8% revenue increase, a 10–15% jump in EBITDA, and a substantial 15–25% uplift in net profit, assuming stable volumes. This is why metal stocks often outperform the underlying commodity once quarterly results reflect higher realizations.
Ponmudi recommends investors track the following stocks for 2026:
Hindustan Copper: A clear beneficiary of the copper upcycle. With trailing revenues near ₹2,800 crore and profit growth over 40%, it stands to gain significantly if copper sustains above ₹1,200/kg. FY26 revenue could grow 20-25%, with profit growth potentially reaching 35-45%.
Hindustan Zinc: Its profitability is now significantly linked to silver prices. With older hedges rolling off, FY26 revenues could see low-to-mid-teens growth, while EBITDA and profit may grow 20-30% on higher realizations.
Hindalco Industries: Offers balanced exposure through aluminium and copper. Consolidated FY26 revenue growth is estimated at 10-15%, with steadier profit growth around 15-20%, making it a lower-volatility play.
Vedanta: Provides diversified exposure across zinc, aluminium, copper, and silver, leading to higher earnings leverage and volatility. FY26 EBITDA could stay near record levels, with profit growth potentially in the 20-30% range.
Overall Outlook for Metal Stocks
The outlook for metal stocks in 2026 remains constructive from an earnings perspective. Ponmudi notes that pure-play silver and copper companies could achieve profit growth of 20-40% if prices sustain, while diversified players may deliver mid-teens earnings growth.
He concludes that quarterly results, particularly for Q3 FY26, will act as key validation points, shifting markets into a results-led phase. Companies with direct exposure to silver and copper, strong operating leverage, and consistent cash flows are likely to remain in focus as long as the structural demand drivers stay intact.
Disclaimer: This story is for educational purposes only. The views and recommendations are those of individual analysts. Investors are advised to consult certified experts before making any investment decisions.
