Market Brief: Metals Sector Momentum The metals sector emerged as a primary market driver on February 25, 2026, with the Nifty Metal index climbing **3%** in intraday trade. This rally followed a broader trend that saw metal stocks surge over **7%** during mid-week sessions. Investor sentiment has been bolstered by a landmark U.S. Supreme Court ruling on February 20, 2026. This decision effectively curbed the executive branch's authority to impose broad "reciprocal duties" under the IEEPA. Consequently, market analysts, including those from Morgan Stanley, expect average U.S. levies on Chinese imports to drop from **32%** to approximately **24%**. This reduction in trade friction has significantly eased global "peak uncertainty." Commodity Price Trends Base metals are reacting sharply to the reopening of Chinese markets post-Lunar New Year. Benchmark copper prices on the London Metal Exchange (LME) jumped **2.8%** to trade near **$13,228** per metric ton. Aluminum followed with a **1%** gain, reaching **$3,118.50** per metric ton. In the domestic market, silver prices surged **4%** to **$90.6**, providing a dual benefit to companies with exposure to both industrial demand and safe-haven investment. Steel prices also advanced **1.3%**, supported by domestic safeguard duties that have curtailed Chinese dumping and protected local margins. Stock Performance and Valuations Leading players in the sector have recorded substantial gains as capital rotates out of the IT sector into cyclical commodities. * **Vedanta Limited**: Shares rose **5%** to reach **₹732.35**. Global brokerages have upgraded the stock, with revised target prices suggesting an upside of up to **₹840**. * **Tata Steel**: Hit a new 52-week high of **₹216.35** on February 25. The company reported a **49.8%** year-on-year increase in quarterly Profit After Tax, reaching **₹2,787.42 crore**. * **Lloyds Metals & Energy**: Jumped **7.5%** following fresh "Buy" ratings from major brokerages, with technical targets set as high as **₹1,600**. * **National Aluminium (NALCO)**: Gained between **3%** and **5%** in recent sessions, fueled by the spike in global aluminum benchmarks. Outlook and Growth Drivers Analysts maintain a "buy on dips" stance, forecasting a potential near-term upside of **15%** to **25%** for the sector. The long-term trajectory for the Nifty Metal index targets the **15,000** level, provided it sustains its current breakout above the **12,400** resistance zone. Domestic demand remains a primary catalyst, specifically driven by infrastructure spending and the "green steel" policies introduced in the 2026 Union Budget. Furthermore, the rising adoption of electric vehicles and renewable energy infrastructure is expected to keep supply-demand balances tight for copper and aluminum through 2027. The sector's resilience is further evidenced by a **11%** year-to-date surge in the Nifty Metal index, significantly outperforming the broader Nifty 50, which fell **2.5%** in the same period. This divergence highlights a clear shift in institutional positioning toward commodity-linked equities.