Top Metal Stocks in NSE: What You Must Know About Them?
Best Metal Stocks in India: An Overview
Metal stocks are one of the important stocks to invest in as we can see that we use metal in our day-to-day life and it will never go away from our lives. For example, the road we use, the house in which we live and the jewelry we carry are all made up of metals. The metal sector in India plays an important role in shaping the Indian economy.
What Are Metal Stocks?
Metal sector stocks mean that the stocks that invest in companies associated with the metal industry and mining products such as gold, silver, iron, steel, aluminum, copper, etc.
The companies included in these stocks are involved in the business of:
- Mining, processing, or investing in the extraction of metals such as gold, silver, and platinum.
- Mining and processing of industrial metals such as iron, copper, ore and aluminum.
- Converting raw metal materials for example melting iron ore to produce steel.
These metal stocks are traded in India on two stock exchanges - National Stock Exchange (NSE) as Nifty Metal and the Bombay Stock Exchange (BSE) as BSE Metal.
NIFTY Metal was founded in 2011. It indicates the performance of the metal sector of the country. It also includes the mining sector.
There exist some top metal companies in India which form a part of the top metal stocks in India. These 15 stocks are a part of the NIFTY Metal Index.
Best Metal Stocks in India
|S. No.||Company Name||Market Cap (in ₹ crores)||Sector|
|1.||JSW Steel||1,73,553||Metals & Mining|
|2.||Coal India||1,43,068||Oil, Gas & Fuels|
|3.||Hindustan Zinc||1,32,802||Metals & Mining|
|4.||Tata Steel||1,32,597||Metals & Mining|
|5.||Hindalco Industries||1,02,330||Metals & Mining|
|6.||Jindal Steel & Power||52,668||Metals & Mining|
|7.||Steel Authority of India||35,605||Metals & Mining|
|8.||NMDC||31,944||Metals & Mining|
|9.||APL Apollo Tubes||29,754||Metals & Mining|
|10.||National Aluminium Co||14,390||Metals & Mining|
|11.||Ratnamani Metals & Tubes||13,684||Metals & Mining|
|12.||Hindustan Copper||11,527||Metals & Mining|
|13.||Welspun Corp||5,976||Metals & Mining|
|14.||Mishra Dhatu Nigam||4,625||Metals & Mining|
|15.||MOIL||3,124||Metals & Mining|
(Data as of 15th November 2022)
Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns
Factors to be considered while investing in metal stocks in India -
Deciding the particular metal share
It is important to check the share price or risk of any metal stock before investing in it. Because gold and silver are the most popular metals, besides this there are other metals such as iron, stainless steel, or platinum where an investor can place their bet on.
Analysis of Risk
The risk in the metal industry is quite high as it can be seen in the case of the Russia- Ukraine war wherein the steel industry is facing a lot of impact in its global demand.
A good bet for long-term investors
Investors should have to keep uptight in market lows and highs. They are ready to wait for the long term to earn the maximum returns on these stocks.
Impact of Economic Condition
Metal stocks typically have an inverse relationship with economic conditions. When the economy fell, people used to invest in the metal. It is clearly visible in the case of the pandemic as people are buying gold to offset the economic downturn.
Metal shares in India have more than 50 companies. The investor can best purchase the share just by purchasing a unit of the Nifty Metal Index which forms a group of the biggest 15 metal stocks.
Best Metal Stocks in India 2022
Here is the information related to the best metal stocks in India -
It is the holding company of Jindal Steelworks. The company's core business is the production and distribution of iron and steel products. It is one of the best metal stocks to invest in as it has the highest market capitalization as compared to its competitors. Its product portfolio includes TMT bars, coiled sheets, rods, bars, etc.
It is an India-origin coal-based company engaged in the business of mining and production of coal. It also operates in the area of coal washeries. Its different types of coal products help in the manufacturing of steel, fertilizers, glass, paper, and brick manufacturing.
It is also an Indian company engaged in business mining and smelting of lead, zinc, and silver. It has various plants, zinc mines, smelting areas, and phosphate mine ore in Rajasthan. It has processing and refining sites of zinc and mines in Uttarakhand. The company is also associated with the business of wind energy and thermal power plants.
Tata steel is in the business of steel manufacturing. It was founded in 1907. The company also processes raw materials and processes steel. Its product portfolio includes coated oils and sheets, wires, and agricultural and garden tools or tubes.
It is involved in the metals industry. Its foreign subsidiary is involved in the business of producing and selling aluminum sheet and light gauge products in America, Asia, and Europe. It also has a subsidiary involved in the business of manufacturing and selling copper products.
Metal stocks are one of the best ways to diversify the portfolio and also to avoid any economic fluctuations. They can provide good opportunities for long-term investors. The list of metal stocks in India is quite lengthy but one can choose to invest in top companies based on their risk profile.
This is not an investment advisory. The blog is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed.
Will metal stock go up?
Yes, it is predicted that metal steel will go up in June 2023 with Tata Steel having an upside potential.
How do I invest in metal stocks?
The best way is to purchase a unit of the Nifty Metal index using an ETF or to purchase a single stock of any metal and mining company.
Is it smart to invest in metals?
It is considered to be a safe investment option because its prices won't crash when the stock market crashes. The value of metals certainly would increase when the market collapses.
Which is best metal stock in India?
The top 15 companies listed with Nifty Metal are among the best metal stocks in India.