Metal stocks experienced a significant surge on October 29, leading the Nifty Metal index to reach a record high of 10,824.70, marking an increase of over 2 percent in morning trading. This rise in share prices is attributed to growing optimism surrounding the upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping, which is expected to address ongoing trade tensions. Additionally, the anticipation of a potential rate cut by the U.S. Federal Reserve has further fueled investor confidence, with the metal index extending its gains for the sixth consecutive session, climbing more than 4 percent during this period.

Among the standout performers, shares of Steel Authority of India (SAIL) jumped nearly 8 percent, trading at Rs 142 per share, as the company prepares to announce its second-quarter financial results later today. Other metal stocks also saw impressive gains, with Hindustan Copper shares rising over 3 percent. Notable increases were also noted in shares of Hindustan Zinc, NMDC, and major players like Vedanta, JSW Steel, and Tata Steel, all climbing more than 2 percent. The uptick in metal stock values is attributed not only to domestic factors but also to the tight supply and demand dynamics influencing global metal prices.

As the market anticipates the Federal Reserve's announcement later today, expectations are that Jerome Powell will reveal a 25-basis-point rate cut following the FOMC meeting. Analysts suggest that while the initial rate cut is likely, traders will closely monitor Powell’s subsequent comments for indications of future cuts. According to Devarsh Vakil, Head of Prime Research at HDFC Securities, further rate reductions could enhance the appeal of non-yielding assets, such as metals. This combination of geopolitical developments and monetary policy adjustments continues to drive momentum in the metal sector, creating a bullish outlook among investors.