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Informist, Friday, Aug. 28, 2026

 

MUMBAI – Shares of ferrous metal companies are expected to trade higher in the near term due to the recent recovery in steel prices. However, non-ferrous companies, particularly aluminium, may remain under pressure until the metal's price rebounds. The Nifty Metal index surged over 3% this week and is expected to gain further as the broader trend remains positive, analysts said.

 

The Nifty Metal ended at 13525.35 points Friday, up 100.15 points or 0.8% from Thursday. APL Apollo Tubes and Steel Authority of India were the outstanding perfomers, ending 3.6% higher each. Other top gainers included Vedanta and Hindustan Zinc, which ended 2.5% and 2.0% higher, respectively. Welspun Corp. and Hindustan Copper were the underperformers among the index constituents, ending 1.3% and 0.5% lower, respectively.

 

Prices of long steel have recovered by 12% over last month, following a sharp correction in June and July, Kotak Institutional Equities said in a report. Jindal Steel and SAIL will benefit the most from this price recovery since they have higher exposure to long steel products. "Domestic market tightness and favorable seasonality with a receding monsoon should elevate prices further," the brokerage said.

 

Secondary steel rebar prices have risen by INR 5,600 per tonne from the lows in July to INR 47,900 per tonne. Domestic hot-rolled coil steel prices remain range-bound with spot prices at INR 58,800 per tonne, a mere INR 1,000 per tonne lower from the highs in April, Kotak said. "Domestic HRC prices are at (about) 3% discount to import parity prices, suggesting upside risks at spot level," it added.

 

In the non-ferrous sector, aluminium prices have declined recently due to the reduced intensity of the war in West Asia and recovering production from smelters in the region. Global primary aluminium production rose almost 4% on month to nearly 6.2 million tonnes in July, according to data from the International Aluminium Institute. Output in the Gulf Cooperation Council rose to 293,000 tonnes in July from 276,000 tonnes in June. "Considering the close correlation between aluminium stocks and LME (London Metal Exchange) prices, we expect aluminium players' stock performance to remain muted until a sustained recovery in aluminium prices becomes visible," JM Financial Institutional Securities said in a report.

 

The Nifty Metal index successfully moved above the earlier resistance at 13220 points this week. "This breakout is encouraging, though the recent candles show some hesitation around 13600," an analyst at a domestic brokerage said, adding that the immediate support is now around 13220, followed by 12700 points. The current resistance is near 13600 and the previous high at 13930. "The 14700 level is the next larger upside reference, though a move towards it may require stronger momentum," he said.

 

TOP HEADLINES

* Lloyds Metals promoter pledges 3.55% stake to SBICAP Trustee for term loan
* Tata Steel invests $140 mln in arm T Steel Holdings by buying 1.6 bln shares
* Hindustan Copper to seek shareholders OK to raise INR 5 bln via NCDs
* Tata Power arm commissions 72.5-MW captive solar project
* Hindalco commissions 30,000 tn/year precipitated hydrate plant in Karnataka
* SC sets aside CGST dept's INR 17.8-bln demand, penalty against Tata Steel
* Indian Metals commences first tapping of hot metal in Kalinganagar
* CARE Ratings ups Jindal Stainless' NCDs, long-term loans rtg to AA+ from AA
* Govt to exercise greenshoe option, sell up to 6% stake in Hind Copper OFS
* Domestic finished steel output up 4% YoY at 14 mln tonnes in July
* SC notice to Tata Steel on Odisha govt's plea in INR-43-bln demand case
* Tata Steel's plea against INR 17.55-bln demand by Jharkhand admitted
* Govt to sell up to 6% stake in Hindustan Copper via OFS
* Ratnamani Metals arm gets $286-mln order to export spools, hangers
* IPO Alert: M P Steel files DRHP for INR-950-mln fresh issue, 2.3-mln-shr OFS
* UltraTech, Grasim Ind, Hindalco incorporate UHG Holdings for transport ops

 

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:

Company	Price	Week-on-week change in %	Resistance	Support
Hindalco Industries	1,037.40	0.30	1,045.00	1,022.10
Hindustan Copper	533.55	(-)6.80	548.50	522.50
Hindustan Zinc	622.00	4.60	634.60	601.50
Jindal Steel	1,179.20	4.60	1,202.30	1,158.50
JSW Steel	1,334.90	3.20	1,356.70	1,309.50
Jindal Stainless	705.15	0.50	713.80	692.70
National Aluminium Co.	394.95	0.10	398.70	387.40
NMDC	86.76	2.50	88.40	85.20
Steel Authority Of India	200.00	15.30	206.20	189.40
Tata Steel	186.50	1.90	191.20	181.70
Vedanta	287.95	3.20	293.70	279.50
Index	Level
Nifty Metal	13525.35	2.70	13613.60	13348.90
Nifty 50	24175.65	(-)0.30	24258.40	24035.50
BSE Sensex	77264.51	(-)0.40	77573.30	76833.80

End

 

US$1 = INR 95.38

 

Reported by Ashutosh Pati

Edited by Rajeev Pai

 

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