More Stories

Informist, Friday, Mar. 07, 2025

MUMBAI – Shares of metal companies could fall next week as are investors are likely to take out some profits from the recent gains in the sector. "If there is a price hike announcement, then we can expect the Nifty Metal index to rise 4% next week," a research analyst tracking the sector at a domestic broking firm said.

The Nifty Metal index rose 8.6% this week, gaining the most among sectoral indices. In comparison, the index had fallen 4.5% the previous week. Vedanta emerged the best performing constituent of the index, gaining nearly 13% during the week. Shares of major steelmakers Tata Steel and JSW Steel rose 10.5% and 6.4%, respectively, this week. No stock in the 15-constituent sectoral index ended the week with a loss.

Metal stocks rose on factors such as the fall in the dollar index, better-than-expected financial results by companies in the sector, and cheap valuations, the research analyst said. China'a announcement to restructure its steel industry and cut its total output led to a further rise in steel stocks. The latest move by China is expected to reduce the dumping of cheap steel into the Indian market, which would be a positive for domestic steel companies, media reports said.

Asked about the implications of US President Donald Trump's tariffs on the sector, the analyst said the move may create volatility and have an indirect effect on the domestic market. Countries such as China, South Korea, and Japan may re-route their steel products to India from the US, which could be a negative for domestic companies, the analyst said.

In February, prices of Indian and Chinese hot-rolled coil remained flat as China's economy struggled to boost demand, brokerage IDBI Capital Markets & Securities said in a research report. However, the People's Bank of China is expected to cut rates later this year, potentially supporting a recovery in demand, the brokerage said. Domestically, the anticipated safeguard duty could provide some support for prices, but its impact will be limited, the brokerage said. Meanwhile, falling prices of coking coal should help improve margins for steel producers, the brokerage said.

TOP HEADLINES

* ANALYSIS: Aluminium cos shine in metal cos' Q3 earnings, steel cos stressed

* Govt appoints Amitava Mukherjee as CMD of NMDC, NMDC Steel effective Thu

* Jindal Stainless divests entire 26% stake in Jindal Coke
* S&P Global sees steel glut in India on US new tariff policy; risk to prices
* NCLT rejects demerger scheme by Vedanta's Talwandi Sabo Power unit

Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:

End

Reported by Akshita Kumar
Edited by Rajeev Pai

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.