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Informist, Friday, Sept. 11, 2026

 

NEW DELHI – Shares of metal companies are expected to rise in the near term despite the weakness seen in metal stocks this week, analysts said. Steel prices are expected to rise further, which is likely to support ferrous companies in the near term, an analyst at a brokerage firm said.

 

"So, if we talk about steel, you might recall that back in April–May, companies implemented a price hike of (INR) 3,000 (per tonne). They are also talking about another (INR) 2,000 price hike in September. That brings the total price increase to almost (INR) 5,000. Against this, sure, coking coal costs are rising, but on the other hand, there are no demand constraints either," the analyst said.

 

The prices of copper and aluminium are also expected to hold at higher levels and will support non-ferrous companies, according to the analyst. "There will be a sharp bounce back (for metal stocks), because the underlying fundamentals—whether on the pricing front or the demand side haven't fundamentally changed," the analyst said. 

 

The Nifty Metal Index ended 2.3% lower at 12999.05 points this week. The Nifty Metals index is expected to remain range-bound at 12800-13500 for the upcoming week, Jatin Gedia, vice-president and technical research analyst at Teji Mandi, said.

 

Except for Jindal Stainless, all metal constituents ended lower this week, down 1.4-9%. Amongst the ferrous companies, Steel Authority of India reported the sharpest fall of 9%. JSW Steel, Jindal Steel, and Tata Steel fell 4.5%, 3.8%, and 3.1%, respectively, this week. However, Jindal Stainless ended 2.5% higher at INR 756.10 this week. "Amongst ferrous companies, Tata Steel, JSW Steel and Jindal Steel look good from a regular perspective. Over there you'll get 10-12% yields for these companies," another analyst at a brokerage firm said.

 

Amongst non-ferrous companies, Hindustan Zinc reported the sharpest fall of 4.1%. National Aluminium Co. and Vedanta fell 3.5% and 3.1% this week, respectively. Hindalco Industries, NMDC, and Hindustan Copper fell 2.9%, 2.7%, and 1.4%, respectively. "Hindalco has already run-up. It has had a short-run actually over the last few months. Now it will correct again," the analyst quoted above said.

 

IDBI Capital Equity Research, in a recent report, said it expects the sharp increase in coking coal costs, coupled with a modest uptick in iron ore prices to largely offset the anticipated margin expansion from higher steel prices. "The re-escalation of the West Asia conflict is likely to keep freight and logistics costs elevated, reducing the competitiveness of Chinese steel exports and providing near-term support to domestic HRC (hot rolled coil) prices. Despite elevated sector valuations, we see selective opportunities at the stock level and maintain a 'neutral' stance on the sector," it said.  End

 

TOP HEADLINES

* Govt gets 7 applications in phase 1 of INR-375-bln coal gasification scheme

* SC sends back to SAT case on SEBI's INR-52.5-mln penalty against Vedanta

* Jindal Stainless inks technical assistance pact with Japan's JFE Steel

* NALCO signs pact with Emirates Global Aluminium to implement smelting tech

* Shyam Metalics Aug consol stainless steel sales up 16.4% on year

* SAIL crude steel production for August up 8% on year at 1.68 million tonnes

* JSW Steel Aug crude steel production up 3% on year at 2.47 million tonnes

* Nava to shut down 60 MW Odisha power unit for maintenance, inspection

* Man Ind gets orders of INR 6 bln for pipes from domestic, global customers

* NCLT OKs Pitti Industries, Dakshin Foundry's merger with parent Pitti Engg

 

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:

 

	Price	Week-on-week change in %	Resistance	Support
Hindalco Industries Ltd	981.50	(-)2.90	1002.20	962.80
Hindustan Copper Ltd	514.50	(-)1.40	523.50	500.50
Hindustan Zinc Ltd	576.45	(-)4.10	592.90	557.40
Jindal Steel Ltd	1120.50	(-)3.80	1164.20	1036.20
JSW Steel LTD	1265.00	(-)4.50	1294.20	1250.40
Jindal Stainless Ltd	756.10	2.50	780.00	729.00
National Aluminium Co.	361.00	(-)3.50	372.10	346.80
NMDC LTD	82.40	(-)2.70	84.40	81.30
Steel Authority Of India Ltd	179.00	(-)9.00	183.80	176.20
Tata Steel Ltd	183.00	(-)3.10	186.10	179.20
Vedanta Ltd	263.70	(-)3.10	270.00	253.30
Index	Levels
NIFTY METAL	12999.05	(-)2.40	13187.80	12791.80
NIFTY 50	23398.10	(-)2.10	23575.90	23142.50
BSE SENSEX	74781.76	(-)2.30	75376.70	73862.70

End

 

Reported by Astha Oriel

Edited by Shubhayan Bhattacharya

 

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