Steel Stocks

Steel company shares hit new highs as brokerage optimism increased due to improving global dynamics and strong earnings potential. Jefferies and Goldman Sachs project growth for Indian steel firms.

Indian metal stocks have shown significant recovery in April, with the Nifty Metal index rising 14.4%. Contributing factors include easing Middle East tensions, a weaker US dollar, and rising base metal prices, notably aluminium, which reached a four-year high amid supply concerns.

Domestic equity markets were closed on April 3 due to Good Friday. On April 2, Nifty 50 rose by 0.15% and Sensex by 0.25%, despite a six-week decline amid global volatility. Selective buying occurred in IT, Metals, and Defence stocks, while Pharma and Financial stocks faced profit booking.

Vibhor Steel Tubes announced a new order worth ₹16.87 crore for transmission towers from Agrawal Infracab Pvt Ltd, attracting investor interest. The company reported a 23% revenue increase in Q3FY26, although net profit fell to ₹1.66 crore compared to last year.

SAIL share price rises 4.4% to ₹167.20, buoyed by a positive report from Emkay Global raising its target price to ₹200. The brokerage anticipates improved margins and profitability despite rising coking coal costs, projecting EBITDA per tonne to increase significantly.

The steelmaker's net profit dropped to ₹190 crore from to ₹951 crore in same quarter last year. Net debt increased to ₹15,443 crore as of 31 December from ₹14,156 crore at the end of September.

Tata Steel shares rose 1.2% to ₹182.20 on January 1, marking a four-day rally of 8%. This surge follows the Indian government's extension of import duties on steel, aimed at curbing cheap imports, particularly from China.

In the final session of 2025, the Indian stock market saw gains led by oil & gas and metals, with the Nifty 50 up 0.78% and Sensex up 0.64%. Both indices rose 10% for the year, though midcaps and small caps performed unevenly.

Key metal stocks including National Aluminium, Tata Steel, and Jindal Stainless saw gains on October 3, with the Nifty Metal index reaching a record high. Factors like a weakening US dollar, potential EU steel tariffs, and rising demand are driving the rally.