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Informist, Friday, May 30, 2025

MUMBAI - With earnings season ending this week, shares of metal companies are likely to move in a tight range next week, too, in the absence of any domestic triggers. The long-term outlook on the sector is bullish on expectations of better earnings growth, higher steel prices in the June quarter, steady input prices, and relief from cheaper imports from China, an analyst tracking steel companies at a domestic broking firm said.

Investors will continue to keep an eye on developments relating to US tariffs, particularly after a US appeals court Thursday granted the administration's request to temporarily pause a lower court's ruling Wednesday that struck down reciprocal tariffs. The US currently has a 25% tariff on steel imports.

In the financial year 2023-24 (Apr-Mar), India had exported finished steel worth INR 19.24 billion, sharply lower than the INR 31.77 billion exported a year ago, according to data from the Ministry of Steel. In 2024, India exported 9 million tonnes of steel to 186 countries and territories, down 2.7% from 9.2 million tonnes in 2023, as per data from the International Trade Administration.

Jefferies this week had said it is bullish on India's steel sector because of the prospects of strong volume growth and a favourable risk-reward. The broking firm said the country's steel volume is expected to rise at a compounded annual growth rate of 8-10% over FY26 and FY27, with safeguard duties expected to aid profitability. It upgraded the rating on JSW Steel and initiated coverage on Jindal Stainless, but downgraded Hindalco Industries on expectations of muted growth and rising concerns about debt. 

Steel Authority of India Wednesday posted higher-than-estimated earnings for the March quarter. Its net profit rose over 16% on year to INR 11.78 billion, beating analysts' expectation of INR 7.01 billion. Its revenue grew nearly 5% to INR 293.16 billion, also beating the Street's view of INR 271.03 billion. Hindustan Copper Thursday reported 53% on-year growth in its bottom line for the March quarter and 29% rise in the top line to INR 7.31 billion. 

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* IPO Alert: Scoda Tubes raises INR 659.99 mln from anchor investors
* Hind Copper to pay INR 1.46/shr dividend; to raise INR 5 bln via NCDs, bonds
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* HC notice to govt on Tata Steel plea seeking compensation in coal block case
* Godawari Power starts mining ops at Chhattisgarh's Boria Tibu iron ore mines
* Earnings Outlook: Low coal prices, high volumes to aid SAIL PAT, sales QoQ
* IPO Alert: Scoda Tubes reduces IPO size by INR 550 mln to up to INR 2.2 bln
* SC orders status quo on NCLT proceedings to liquidate Bhushan Power
* Sarda Energy Jan-Mar consol PAT rises 14.7% YoY to INR 1.08 billion
* Analyst Concall: JSW Steel sees recent steel price rise aiding Q1 revenue
* India April crude steel output up 5.6% on year, says World Steel Association
* JSW Steel moves SC to stay proceedings to liquidate Bhushan Power
* Earnings Review: JSW Steel PAT up 16% YoY on higher sales, lower input costs

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 Anjana Therese Antony
Edited by Rajeev Pai

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