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Informist, Friday, May 22, 2026

MUMBAI – Analysts expect the Nifty Metal index to outperform the headline indices as there is visibility on margin expansion as well as sustained demand. Metal prices are also expected to remain elevated in the near term, benefiting metal companies. In the steel space, while demand may moderate during the monsoon season, metal prices are likely to remain steady, analysts said. 

"I expect the metal (stocks) to outperform the benchmark index due to earnings growth visibility, and the steel prices will likely hold steady or inch up higher in the near-term, as the demand is still intact," said Praveen Bokade, head of research at IDBI Capital Markets & Securities. As for valuations, Bokade said valuations for many stocks in the sector are above long-term averages and trading at a premium. He said the valuations are justified at this point in time. While many expect iron ore prices to rise and put pressure on margins, Bokade expects companies to pass the higher costs on to customers. 

Some analysts flagged that the increase in coking coal prices during the April-June quarter will be monitored, as it may affect steel companies' performance. Bokade expects coking coal prices to stabilise after rising 21% over the last six months to a year and does not see a "dramatic" rise in the June quarter. 

Traders will also react to Hindalco Industries' earnings. The company's consolidated net profit for the March quarter halved on year to INR 25.97 billion due to a one-time cost of INR 41.71 billion. Excluding the one-time cost, the company's consolidated net profit would have been INR 67.68 billion, above the analysts' estimates of INR 47.60 billion.

The company's on-year fall in consolidated profit for the March quarter was the steepest in 13 quarters, data available with Informist showed. Revenue from operations rose over 20% on-year to INR 781.33 billion, above Street estimates of INR 709.27 billion. The stock closed 0.9% higher at INR 1,109.20 on the National Stock Exchange. The company announced the results after market hours. The Street will track management commentary on volume growth, earnings before interest, taxes, depreciation, and amortisation guidance, as well as capacity expansion plans.

"Near-term technical stance on the metals sector remains broadly neutral to bullish," Bhavya Shah, technical and derivatives analyst at StoxBox, said. Following recent profit-taking at higher levels, the sectoral index has rebouded steadily, he said. Stock-specific price actions remain highly encouraging, with several individual stocks exhibiting strong technical setups, he said. Analysts see the index moving within a broader range of 12800 to 13800 points. 

TOP HEADLINES

* Godawari Power completes final tranche of Ardent Steel sale for INR 222 mln
* SC OKs INR-1.3-bln fine on Vedanta arm for power availability misdeclaration
* SC stays GST dept's INR 8.91-bln demand, equal penalty against Tata Steel
* Timeline to review Hindalco's AluChem Companies acquisition extends to Jul 2
* Shouldn't look at EU carbon tax in isolation, says Jindal Stainless official
* Godawari Power Jan-Mar consol PAT rises 27% on year to INR 2.80 bln
* GQG Partners, SBI MF buy stake in JSW Steel for INR 31.5 bln via block deals
* Most brokerages bullish on Tata Steel, downplay risks from Netherlands ops
* Hindustan Copper signs confidentiality pact with Chile's state-owned miner
* Jain Resource Jan-Mar consol PAT rises 21.8% YoY to INR 660.4 million
* Corporate India's earnings growth to slow on rising costs - Moody's Ratings
* SC notice to Vedanta on plea over TDS default on payment to foreign co
* JSW Energy sells 25 mln shrs in JSW Steel for INR 31.50 bln in NSE bulk deal
* Analyst Concall:Dutch ops P&L sees uncertainty on notice to shut - Tata Steel
* Analyst Concall: SAIL plans INR-150-bln capex in FY27, over INR 200 bln FY28
* Earnings Review:SAIL Q4 PAT rises YoY despite one-time cost; just above view
* Earnings Review: Tata Steel PAT rises sharply; revenue highest in 15 qtrs
* Tata Steel Netherlands gets notice from local bodies to shut gas, coke unit
* Ratnamani Metals Jan-Mar consol PAT falls 49.5% YoY as sales down 36.8%
* Hind Copper Jan-Mar PAT up over 2-fold YoY at INR 4.44 billion
* JSW Steel's bold capacity add plan positive but factors weigh, say analysts

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

End

Reported by Gopika Balasubramanium

Edited by Saji George Titus

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