India Raises Gold, Silver Import Duties
Shares of major Indian metal companies experienced a significant rally on Wednesday, May 13, 2026, following the government's decision to raise import duties on precious metals. The duty on both gold and silver has been increased from 6% to 15%, a move that immediately boosted investor confidence in domestic producers.
This policy adjustment is primarily aimed at reducing the nation's reliance on overseas metal purchases. By making imports more expensive, the government seeks to encourage domestic production and simultaneously ease pressure on India's foreign exchange reserves.
Major Metal Stocks See Significant Gains
The market responded enthusiastically to the duty hike, with several prominent metal stocks registering substantial gains throughout the trading session.
Hindustan Zinc Leads Silver Producers
Hindustan Zinc, recognized as India's largest primary silver producer, saw its shares jump by 5.54% to reach Rs 677.10. The company refines silver with a purity of at least 99.9%, primarily extracting it from its Sindesar Khurd mine located in Rajasthan.
Vedanta, Nalco, and Hindalco Also Up
Vedanta, the parent company of Hindustan Zinc, also recorded a strong performance, with its shares surging 6% to Rs 323.65. Aluminum producer Nalco's stock climbed over 4% to Rs 411.05. Hindalco Industries, which produces silver as a valuable by-product of its copper smelting operations, saw its stock price rise by 3.8% to Rs 1081.35. Hindalco extracts and refines both silver and gold at its Dahej copper facility in Gujarat.
Broader Market Rally
Beyond these key players, a broader positive sentiment swept across the metal sector. Other notable gainers included SAIL, which saw an impressive 14% increase, Jindal Steel (up 2.79%), JSW Steel (up 2.40%), NMDC (up 4.53%), and Lloyds Metals (up 4%). This collective surge propelled the BSE Metal index up by 1,412 points to 43,403, while the Nifty Metal index also zoomed 3.22% to 13,296.
Global Metal Market Trends
The domestic rally in Indian metal shares is occurring against a backdrop of a robust global market for metals. Precious metals like gold and silver have been hitting record highs internationally, with gold trading around $4,748 per ounce and silver exceeding $85 per ounce, marking a jump of over 7%.
Industrial metals are also experiencing a significant boom. Copper, for instance, soared past $14,000 per tonne on the London Metal Exchange (LME), nearing its all-time high. This global surge is attributed to factors such as ongoing supply crunches and increasing demand driven by infrastructure development, including that for artificial intelligence.