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Informist, Friday, Mar. 28, 2025

MUMBAI – Shares of metal companies are expected to be range-bound next week due to absence of major negative or positive triggers. Any announcement related to imposition of safeguard duty will be a major positive for the sector, an analyst tracking the sector said. Friday was the last trading session for the current financial year and the Indian stock market will be closed Monday on account of Eid-ul-Fitr.

The medium-term outlook for India's steel sector looks good due to growth in GDP and low per-capita steel consumption, Emkay Global said in a research report on Wednesday. The brokerage firm expects the consumption of steel to grow at a compounded annual growth rate of 7-8% over the next five years, with Indian steelmakers planning capacity expansions to match this growing demand.

The proposed provisional safeguard duty of 12% on the import of alloy and non-alloy steel flat products may improve the subdued profitability of domestic steel companies due to higher realisations, India Ratings and Research said in a report on Tuesday. This is because it will offer headroom to increase domestic steel prices by up to 13.2%, the ratings agency said. Indian hot-rolled coil prices rose by 3.8% on week to INR 51,500 per tonne as the Directorate General of Trade Remedies announced a provisional 12% safeguard duty on imports of flat steel products, IDBI Capital and Securities said in a report on Monday.

The capacity utilisation of the domestic steel industry is likely to remain around 80% over 2026-27 (Apr-Mar) supported by healthy domestic demand growth, India Ratings and Research said. The demand growth is likely to be supported by the government's continued spending on infrastructure projects such as roads, railways, and ports along with expected stable growth in other end-user industries like real estate, automobile, and consumer durables, the ratings agency said.

The Nifty Metal index fell 1.2% this week and ended at 9092.50 points Friday. The index had risen 4.9% in the previous week. Support for the index in the near term is seen at 8900-8700 points and the resistance is seen at 9350-9500 points, assistant vice president of technical and derivatives research at Globe Capital Market, said. Shares of Hindalco Industries and Tata Steel fell 1.9% each this week. Shares of Jindal Stainless fell 7.1%, while NMDC rose 2% this week.

TOP HEADLINES
* Jindal Steel wins Saradhapur Jalatap East block coal mine auctions
* SC junks tax demand notices on JSW Steel in Monnet Ispat & Energy IBC case
* NCLAT rejects SAIL's plea against illegal stevedoring cartel at Paradip port
* JSW Steel further extends Minas de Revuboe buyout deadline to Jul 31
* Vedanta board OKs appointment of Rajiv Kumar as CEO of aluminium business
* Jammu Pigments ceases to be Godawari Power's arm post stake dilution
* Copper contracts on LME, MCX likely to touch record highs soon, says experts
* JSW Steel's arm transfers slurry ops to JSW Infra for INR 16.17 bln
* Jindal Stainless and its arm buy 9.62% stake in M1xchange
* Welspun Corp gets 73.1 mln shares in arm Welspun Specialty via rights issue
* Jindal Stainless to buy 5.03% stake in Mynd Solutions for INR 1.03 bln
* Lok Sabha OKs bill to replace Boilers Act, 1923, retains most old provisions
* RESEARCH: Copper prices likely to correct once US demand eases - Commerzbank
* JSW Steel board OKs tendering of 222.6 mln shares in arm under buyback offer
* JSW Steel to transfer Salav unit to JSW Green Steel for INR 22.33 bln
* Provisional safeguard duty might lift margins of steel cos - India Ratings
* KABIL to finalise plan for lithium mining in Argentina by mid-2027 - Sources
* Global copper market deficit narrows to 19,000 tn in Jan, says study group
* CRISIL assigns 'AA' rating to Jindal Stainless' NCDs worth  INR 8.19 bln
* Govt appoints Sanjiv Kumar Singh as CMD of Hind Copper effective Friday
* Jindal Stainless CFO Anurag Mantri resigns effective Apr 5

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 Ashish Shirke

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