Tata Steel rose as much as 5.9% to Rs 167.75 on the BSE, while Jindal Steel advanced 5% to Rs 1024.95. Steel Authority of India Ltd (SAIL) also gained 5% to Rs 129.15, and JSW Steel added 3.4% to Rs 1,079. Other metal players, including Vedanta, NMDC and Hindalco, rose between 2% and 3%.
The Nifty Metal index touched an intra-day high of 9,617.95, up 2.5% for the day, making it the best-performing sectoral index.
Analysts at CLSA said steel prices are expected to firm up, backed by global recovery trends and seasonal strength, adding that Indian producers are likely to benefit from China’s “anti-involution” strategy aimed at curbing excess competition.
Meanwhile, Dharmesh Shah, Head-Technical at ICICI Direct, pointed to currency movements as a potential tailwind for the sector. “Historically, metals have had an inverse correlation with the dollar index. The chart indicates that the dollar index is on the verge of a breakdown below 96 in the coming weeks, which could augur well for the entire metal space,” Shah told ET Now.
Policy support
India recently extended its safeguard duty on imported steel for three more years, creating a 9% price advantage for domestic producers. The measure is designed to reduce reliance on imports and shield local manufacturers from global price swings.
China’s “anti-involution” campaign, which includes production caps and plant closures, is also expected to influence supply dynamics worldwide. Analysts say the combination of India’s tariff protection and China’s output restrictions may help stabilize steel pricing.
Despite subdued consumption during the monsoon season, the industry anticipates a rebound in the months ahead. Companies such as SAIL and Tata Steel are seen as well-placed to capitalize on improving demand and favorable global trends, according to market experts.
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