Metal Stocks Outlook
Seen in range on limited scope of rise in steel prices
This story was originally published at 21:09 IST on 9 May 2025
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MUMBAI – Shares of steel companies are seen moving in a thin range next week with a negative bias amid uncertain demand environment due to reciprocal tariffs by the US and tensions at the border of India and Pakistan. Further, analysts see limited scope for improvement in prices of steel products due to the recent safeguard duty imposed by the Indian government.
"The impact of safeguard duty is expected to be limited, as it does not apply to FTA (foreign trade agreement) countries like Japan, Nepal and Korea, which account for 40% (in Mar' 25) of India's steel imports," IDBI Capital Markets and Securities said in a research report Wednesday.
Further, coking coal prices increased in April due to lower supply from Australia, and it may affect earnings of metal companies in the coming quarters. Elara Capital said coking coal prices from Australia have risen over 9% in a month and the same may impact margin of steel companies in the September quarter.
Elara also expects steel prices to not see any major gains in the medium term due to concerns of slowdown in global economic growth, oversupply in global and domestic markets, and the possibility of devaluation of yuan.
Industry major Tata Steel is set to report its quarterly earnings on Monday, which would help investors assess the demand environment for steel. Its consolidated net profit in the March quarter is likely to rise 76% on year to INR 10.78 billion, according to estimates by 15 brokerages. At the same time, its consolidated revenue is expected to drop over 5% on year to INR 554.72 billion.
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* LIC raises stake in Tata Steel to 7.85% from 5.84%
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 | 627.15 | (-)0.80 | 647.00 | 593.90 |
| Hindustan Copper | 205.32 | (-)3.70 | 211.60 | 194.80 |
| Hindustan Zinc | 408.35 | (-)4.80 | 417.90 | 393.20 |
| Jindal Steel & Power | 855.35 | (-)4.70 | 873.80 | 824.40 |
| Jsw Steel | 957.00 | (-)1.70 | 974.30 | 926.30 |
| Jindal Stainless | 579.60 | (-)1.50 | 616.10 | 556.70 |
| National Aluminium Co | 156.84 | (-)1.80 | 162.60 | 146.10 |
| NMDC | 64.29 | (-)1.50 | 66.30 | 61.00 |
| Steel Authority of India | 109.01 | (-)3.70 | 111.30 | 105.10 |
| Tata Steel | 142.78 | 1.10 | 144.90 | 139.40 |
| Vedanta | 407.90 | (-)1.70 | 415.20 | 394.90 |
| Nifty Metal | 8420.55 | (-)1.20 | 8550.90 | 8191.10 |
| Nifty 50 | 24008.00 | (-)1.40 | 24264.50 | 23807.50 |
| BSE Sensex | 79454.47 | (-)1.30 | 80549.80 | 78420.70 |
End
Reported by Anshul Choudhary
Edited by Deepshikha Bhardwaj
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