Hindalco, Tata Steel Lead Gains As Metal Stocks Rise Up To 2% On China’s 9-Month PMI Low

Something interesting happened on July 3. While China’s economy showed signs of stress, India’s metal stocks quietly took the spotlight.

Hindalco, Tata Steel, and others saw gains up to 2%, even as China’s services sector stumbled. What’s going on here? The answer lies in a story of shifting global power—and how India is starting to turn weakness abroad into strength at home.

China’s PMI Drop Sends Ripples

According to Caixin/S&P Global, China’s services purchasing managers’ index (PMI) fell to 50.6 in June, down from 51.1 in May. This may not sound like a big drop, but it marks the lowest growth in 9 months.

Why? US tariffs and global demand issues are hitting Chinese exports hard. Supplier delays, shrinking jobs, and falling prices only added to the stress.

Caixin’s senior economist Wang Zhe summed it up:

“The external environment is severe and complex. Businesses are losing optimism.”

India’s Metals: Rising From the Ashes

While China is slowing, India’s metal companies are gaining ground. On July 3:

NMDC jumped nearly 2%
Hindalco rose over 1% to ₹706
Tata Steel and Nalco gained around 0.8%
Jindal Steel, Jindal Stainless, and Hindustan Zinc also edged up

This helped the Nifty Metal index rise by 0.6%, and it’s now up over 2.3% in the last 3 sessions.

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The Real Story: Shift in Metal Power?

This isn’t just market noise. It shows a deeper shift:

As China slows, India’s stable demand and production look stronger.
With the dollar index falling, metals look more attractive globally.
And as investor trust moves from China to India, it could mean long-term gains.

But it’s not just about numbers. It’s about positioning. While China battles policy pressures and global backlash, Indian companies are building quietly, growing steadily, and attracting the spotlight.