Stocks to BUY: Global brokerage firm HSBC has adopted a bullish view on the metal sector. The brokerage believes that metals will remain attractive for investment in the future due to supply constraints, strong industrial demand and strategic importance in emerging technologies. On this basis, HSBC has reiterated or upgraded its recommendations on Hindustan Zinc, Hindalco Industries and National Aluminum Company (NALCO) and has expressed the possibility of an upside of up to 30 percent from the current level.
According to HSBC, there are several major macro and market factors influencing metal prices in 2026. The most important among these is supply constraints. Due to lack of production in many metals, the gap between demand and supply is increasing, which is directly impacting the prices. The brokerage says that this supply shortfall is more pronounced in metals like aluminum and zinc, due to which their prices are likely to remain strong.
Additionally, the rapidly growing need for energy transition and Artificial Intelligence (AI) related technologies is also driving metal demand to new heights. As countries around the world are moving towards renewable energy, electric vehicles and modern infrastructure, there is a sharp increase in demand for metals like aluminium, copper and zinc. HSBC believes that this demand is not just seasonal but fundamentally strong.
The brokerage has also indicated that some metals have entered a potential “super-cycle”. This means that there may be higher than average demand for these metals for a long time and prices may remain at high levels for many years. In such an environment, both the earnings and valuations of metal companies are expected to get support.
Bullish stance on Hindustan Zinc
HSBC has raised Hindustan Zinc to “Buy” from “Hold”. Also, its target price has been increased from Rs 520 to Rs 750. This shows a potential upside of about 7 percent from Friday’s closing price of Rs 698.85. The brokerage believes that the supply-demand situation of zinc remains strong and higher prices will have a direct impact on the company’s earnings and margins.
Hindalco expected to rise by 30%
While maintaining “Buy” rating on Hindalco, HSBC has increased its target price from Rs 1,060 to Rs 1,240. This shows an upside of about 30 percent compared to Friday’s closing price of Rs 950.30. According to the brokerage, aluminum plays an important role in energy transition technology and its prices are getting support due to reduction in supply. Apart from this, cost control and better demand outlook are also positive for Hindalco.
Trust in NALCO also maintained
Similarly, HSBC has also maintained “buy” rating on NALCO and raised its target price from Rs 373 to Rs 420. This represents a potential gain of about 13 percent from Friday’s closing price of Rs 371.75. The brokerage says that NALCO may benefit in the coming times due to strong balance sheet, strengthening aluminum prices and favorable market conditions.
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