Metal Stocks Outlook
Gains seen capped on risk to global demand for metals
This story was originally published at 19:59 IST on 18 April 2025
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MUMBAI – Concerns about slowdown in economic growth and demand globally due to tariffs by the US are likely to keep gains capped for metal companies next week. Though the March quarter earnings season has begun, no major company in the metals sector is scheduled to report earnings next week.
"In the medium term, concerns around oversupply — domestic and global — and slowing global GDP amid tariff uncertainty, and the possible devaluation of yuan could put pressure on the steel industry," Elara Securities said in a note earlier this week. Having said that, the brokerage is bullish on domestic demand for steel and hopes the proposed 12% safeguard duty on steel products would help push domestic prices higher.
Metal companies are expected to see strong growth in profits during the March quarter due to lower prices of coking coal, a key ingredient for metal companies. However, the performance of metal companies in terms of sales is expected to be mixed with steel producers likely to report a decline in revenue, while the non-ferrous companies are likely to report a growth.
Overall, the cumulative net profit for the nine metal companies in the Nifty 200 index is expected to rise 46% on year and 24% on quarter in the March quarter, according to estimates collected by Informist. At the same time, sales growth would be slightly higher on year, but may rise 4.5% on quarter, estimates show.
The Nifty Metal index rose nearly 4% this week after falling for three straight weeks, during which it lost 11%. Metal stocks found new life this week after the US announced a 90-day pause in reciprocal tariffs and even exempted some products from tariffs, which helped calm concerns around recession in the US. Shares of Jindal Steel & Power, Lloyds Metals and Energy, Hindustan Zinc, and National Aluminium Co. rose 7-9% this week.
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Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Hindalco Industries | 609.50 | 1.50 | 621.80 | 597.80 |
| Hindustan Copper | 210.41 | 5.40 | 217.10 | 204.70 |
| Hindustan Zinc | 439.70 | 7.00 | 453.00 | 423.50 |
| Jindal Steel & Power | 881.70 | 9.40 | 922.90 | 827.70 |
| JSW Steel | 1007.20 | 1.70 | 1022.50 | 979.50 |
| Jindal Stainless | 561.45 | 3.60 | 576.40 | 547.20 |
| National Aluminium Co | 152.89 | 6.80 | 156.50 | 148.80 |
| NMDC | 65.87 | 4.70 | 67.00 | 64.60 |
| Steel Authority of India | 113.96 | 5.20 | 117.10 | 111.50 |
| Tata Steel | 137.14 | 2.80 | 140.50 | 132.00 |
| Vedanta | 400.05 | 5.20 | 409.60 | 388.40 |
| Nifty Metal | 8476.50 | 3.80 | 8614.40 | 8279.60 |
| Nifty 50 | 23851.65 | 4.50 | 24248.00 | 23100.40 |
| BSE Sensex | 78553.20 | 4.50 | 79896.20 | 75994.20 |
End
Reported by Anshul Choudhary
Edited by Ashish Shirke
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