Mumbai, September 2, 2025 – Shares of metal and real estate companies surged on Tuesday, lifting sectoral indices as optimism grew over global and domestic economic triggers.
The Nifty Metal index rose 1.3% to 9,426, while the Nifty Realty index gained 1.33% to 891.50 by 12:10 pm. Several factors fueled the rally, from expectations of a US Fed rate cut to strong Indian GDP numbers.
1. Fed Rate Cut Hopes
Federal Reserve Chair Jerome Powell recently signaled that weak US job data may push the Fed to cut rates in mid-September. Investors expect a 25-basis-point cut, which could lower global borrowing costs and attract more capital to India. Markets also anticipate the RBI could follow suit, further supporting real estate and metal stocks.
2. GST Reforms on Horizon
The GST Council will meet on September 3-4 to discuss a simplified two-rate structure of 5% and 18%. Experts say the move will ease compliance, cut input costs, and improve cash flows for developers—eventually reducing home prices.
3. Strong GDP Growth
India’s economy grew 7.8% in Q1 FY26, the fastest in five quarters. The figure beat the RBI’s 6.5% projection and economists’ forecasts, reinforcing confidence in the country’s growth story and boosting sectoral sentiment.
4. Weak Dollar Boosts Commodities
The US dollar slipped to multi-month lows, making commodities cheaper globally. A softer dollar strengthens demand for metals, giving Indian producers like NALCO and NMDC an export edge.
5. China’s Steel Cuts
Reports suggest China plans to reduce steel output between 2025 and 2026 to tackle overcapacity. This move could curb dumping of cheap metal into India, benefiting domestic players.
Stock Highlights
- NALCO jumped nearly 5%, emerging as the top gainer.
- NMDC gained close to 4%, while Hind Copper, SAIL, Tata Steel, Hindustan Zinc, and JSW Steel rose up to 3%.
- On the realty side, Phoenix Mills surged 3.5% to ₹1,570, while DLF and Anant Raj rose nearly 3% each.
