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Why India's metal stocks jumped sharply today
13 May 2026

Metal stocks in India witnessed a major rally on Wednesday. The surge was led by Hindustan Zinc, Vedanta, and Hindustan Copper.

The spike came after the Indian government raised import duties on several categories of gold and silver to 15%, from the previous rate of 6%.

The move is aimed at curbing excessive imports of precious metals and easing pressure on India's foreign exchange reserves amid global uncertainties.

Nifty Metal index surged by 3%
Market response

The Nifty Metal index surged by 3.18% to 13,290 with all its constituents in the green. Hindustan Zinc emerged as the top gainer, surging nearly 5%.

Other companies such as Hindustan Copper, Vedanta, National Aluminium Company (NALCO), and Hindalco also witnessed significant gains of over 1.5% each during the trading session.

The government has also increased import duties on gold imported from UAE under fixed-quantity quota mechanism that attracted concessional rates earlier.

Gold, silver prices hit upper circuit
Price surge

The government's decision has resulted in a sharp increase in the prices of precious metals. Gold and silver prices hit their 6% upper circuit limits on Wednesday.

The MCX gold rate jumped ₹9,206 or 6%, to ₹1,62,648 per 10gm while the MCX silver price surged ₹16,743 or 6%, to ₹2,95,805 per kg.

The revised tax structure is not limited to gold and silver but also includes platinum, jewelry findings as well as industrial imports related to precious metals.

Impact on jewelry demand and recycling
Market implications

The higher import duties are likely to increase the landed cost of imported bullion, which could push domestic prices higher.

Analysts believe this move could impact jewelry demand in the near term, especially in price-sensitive segments of the market.

However, it may also encourage recycling and exchange of old jewelry as consumers adapt to changing market conditions.

Geopolitical tensions and Modi's call for restraint
Strategic decision

The government's decision comes amid ongoing geopolitical tensions in West Asia.

Prime Minister Narendra Modi has urged citizens to exercise restraint, including postponing discretionary gold purchases and reducing foreign travel, as part of efforts to shield the economy from wider conflict-related impacts.

India's growing reliance on gold imports has raised concerns among policymakers due to its contribution to trade deficit and pressure on foreign exchange reserves.