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Informist, Thursday, Oct. 1, 2026

 

NEW DELHI – Shares of metal companies are expected to rise in the near term as the steel spread widens, despite higher coking coal prices for ferrous players, analysts said. Higher copper prices and stable aluminium prices are expected to benefit non-ferrous players. 

 

Steel spreads have risen to a multi-month high despite rising coking coal prices, according to an analyst at a brokerage firm. "So, we believe that ferrous companies should continue to see a healthy set of profit growth moving ahead. So, we continue to remain positive on ferrous pack," the analyst said. 

 

Notably, Emkay Global Financial Services expects 10-20% upside to financial year 2026-27 (Apr-Mar) earnings before interest, tax, depreciation, and amortisation across ferrous companies if hot-rolled coil and rebar prices remain at current levels. "The recent recovery from July lows, gradual absorption of excess supply, and rising raw material costs support current pricing, although further upside would require a more favourable supply-demand balance," it said in a report. 

 

Among the non-ferrous players, the analyst expects copper companies such as Hindustan Copper to benefit from strong copper prices. Aluminium players are likely to benefit from stable aluminium prices, which are currently at $3,000 to $4,000 per tonne, the analyst said. Notably, the analyst expects Vedanta Aluminium Metal to benefit from higher capital expenditure, which is likely to boost its volumes.

 

"New demand avenues, coupled with limited mine development projects and delayed expansions, are likely to push the copper market into a prolonged deficit, supporting sustained price strength over the coming years. We expect non-ferrous equities to benefit as the cycle broadens in scope," Aditya Birla Money said in a report earlier this week.  

 

Meanwhile, stainless steel players are likely to benefit from rising demand from the infrastructure sector, according to the analyst. "There is slightly better growth ahead for the stainless steel industry. So, we have seen that, because of an increase in spending on infrastructure, demand for stainless steel or the overall industry is growing ahead and faster, at least compared with the other ferrous as well as non-ferrous pack. So, stainless steel players like Jindal Stainless, we believe, have a constructive demand," the analyst said. 

 

The Nifty Metal index ended 4.8% lower at 12460.70 points this week. The sectoral index is expected to remain rangebound between 12200 and 13400 as a rise in the dollar index will be negative for metal companies, according to a technical analyst. 

 

All metal stocks ended 2-6.6% lower this week. Among the metal players, Hindustan Copper, National Aluminium, and NMDC were the worst performers, falling 6.6?ch during the week. 

 

TOP HEADLINES

 

* Lloyds Metals H1 iron ore output up 36% YoY at 10 million tonnes

* SAIL moves SC over INR-4.6-bln arbitral award in favour of British Marine

* Kirloskar Ferrous suspends ops at furnace in Karnataka plant for 15 days

* IPO Alert: A-One Steels to list Thu, issue price set at INR 405 per share

* IPO Alert: German Green Steel issue subscribed 28.98 times as on final day

* Tata Steel invests INR 32.60 bln in arm T Steel Holdings by buying shares

* NLC India approves JV with NALCO to develop 1.08 GW thermal power plant

* Tata Steel gets favourable order in INR 4.27-bln FY09 tax dispute

* Godawari Power invests INR 500 mln in arm by subscribing to pref shrs

* Tata Sons listing to not immediately hit Tata group cos' rtg - S&P Global

* NALCO eyes new 500,000 tonne aluminium smelter in Andhra Pradesh

* IPO Alert: A-One Steels issue closes with 11.6 times subscription

* IPO Alert: German Green Steel subscribed 5.14 times as on second day

* Lloyds Metals arm allots INR 6.07 bln worth of shares to parent company

* Goodluck India defence arm raises INR 2.76 bln via pref issue for capex

* SAIL, Bharat Coking ink MoU to develop two coal blocks in West Bengal

* IPO Alert: A-One Steels India offer subscribed 1.35 times as on second day

* Tata Steel, Dutch govt extend green steel project pact till Mar

 

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	941.85	(-)3.60	960.50	914.20
Hindustan Copper	462.15	(-)6.60	482.30	439.90
Hindustan Zinc	555.05	(-)5.80	575.40	537.10
Jindal Steel	1100.50	(-)5.50	1157.80	1050.40
JSW Steel	1233.00	(-)3.50	1276.30	1193.10
Jindal Stainless	732.70	(-)2.10	752.50	718.40
National Aluminium Co.	334.90	(-)6.60	343.80	325.10
NMDC	74.64	(-)6.60	78.40	71.80
Steel Authority of India	174.50	(-)5.70	186.60	164.60
Tata Steel	178.00	(-)5.30	190.90	169.30
Vedanta	252.05	(-)5.40	262.10	242.20
Index	Levels
Nifty Metal	12460.70	(-)4.80	12961.40	12025.60
NIFTY 50	22421.95	(-)3.10	22809.90	22023.30
BSE SENSEX	71909.70	(-)2.70	73205.20	70645.10

 

End

 

US$1 = INR 96.32

 

Reported by Astha Oriel

Edited by Saji George Titus

 

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