Indian Metals Sector Shines: Upbeat 2026 Forecast Bolstered by Global Trends and Policy Changes

The Indian metals and mining sector is poised for growth in 2026, driven by global macro trends and domestic demand. HSBC's report highlights tailwinds like a weaker US dollar and strong balance sheets, with significant improvements expected in the steel sector due to recent policy measures and increasing institutional interest.

According to HSBC Global Investment Research, the Indian metals and mining sector is expected to thrive in 2026, buoyed by supportive global macroeconomic conditions and strong domestic demand. Notable policy measures, such as safeguard duties, are also playing a crucial role in this positive outlook.

The report outlines several advantages for the sector, including a weaker US dollar, challenges on the supply side for copper and aluminium, and strengthened balance sheets. Institutional under-ownership, combined with favorable policy moves, reinforces the sector's potential in the coming year.

While 2025 focused heavily on base and precious metals, the steel sector is predicted to see significant improvement in 2026. Earnings are expected to stabilize due to recent three-year safeguard duties on flat steel imports. However, a cautious note was sounded for the third quarter of FY26, with potential weaknesses from lower domestic prices and higher coking coal costs.