As 2025 draws to a close, metal stocks and public‑sector banks have posted similar headline returns, but the metal sector shows stronger overall performance.
Why Metal Stocks Look Better
The Nifty Metal index has risen about 24% this year, just shy of the 26% gain in the Nifty PSU Bank index. The difference is clear when you look at individual stocks.
- 93% of metal stocks (14 out of 15) are in positive territory, compared with 67% of PSU banks (8 out of 12).
- 73% of metal stocks posted double‑digit gains, versus 67% for the banks.
- Only one metal stock, Adani Enterprises, slipped 6%, while four PSU banks fell between 31% and 44%.
Top Performers in the Metal Space
Strong commodity prices lifted many metal companies:
- Hindustan Copper surged 90% on soaring copper prices.
- Hindalco Industries jumped 40% as copper and aluminium rallied.
- NALCO climbed 41% over the past year.
- Hindustan Zinc rose 36% thanks to silver gains.
- Steel makers like JSW Steel (+20%), Lloyds Metals (+17%), NMDC (+17%) and SAIL (+16%) also added to the upside.
How PSU Banks Performed
Public‑sector banks posted mixed results but overall stayed positive:
- Canara Bank led with a 50% jump.
- Indian Bank up 43% and Bank of India up 36%.
- State Bank of India added 21%.
- Smaller gains came from PNB (19%) and Bank of Baroda (17%).
- Bank of Maharashtra lagged with only a 10% rise.
Monthly Snapshot
In December, the metal sector was the best performer, gaining around 5%, while PSU banks fell about 3%. Earlier in the year, metal returns peaked at 11% in March, 10% in September and 7% in May.
What Experts Say
Analysts expect the metal basket to keep outpacing other sectors. Some recommend accumulating stocks like Hindustan Copper and Hindalco, while others keep a close eye on Tata Steel for potential upside.
Bottom Line
Metal stocks delivered broader and more consistent gains than PSU banks in 2025, with most companies posting positive returns. Investors who wanted exposure to the metal sector benefited from rising commodity prices and strong earnings momentum.
Remember, this is just my perspective, not a prediction. Do your own research before making any investment decisions.