Metal Index Rises 2% on Strong Performance; JSW Steel Leads Gains, Tata Steel Up 3.5% Following Target Hike

Nifty Metal Index Rises 2% After Two-Day Losing Streak

The Nifty Metal index rebounded on Friday, ending a two-day losing streak with a 2% gain. This recovery follows a decline of approximately 3.5% in the previous two sessions. The resurgence in the index was primarily driven by strong buying activity in steel stocks.

JSW Steel led the gains, rising over 4%. Tata Steel shares also saw significant growth, increasing by 4.69% to reach an intraday high of Rs 199.44 on the NSE. This performance was partly attributed to a recent price target increase and a 'buy' rating reiteration by HSBC.

HSBC raised its price target on Tata Steel to Rs 250 from Rs 235 in a March 20 note, indicating an upside potential of 31% from Thursday's closing level. The brokerage cited protective measures in key markets, including the UK's import protection measures and the European Union's carbon price imposition on imported steel.

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The UK's recent announcement of import protection measures, including a 50% tariff and reduced quotas, aims to support its domestic steel sector amid concerns over global overcapacity. HSBC has increased its earnings estimates for Tata Steel by 5-14% for FY27-FY28, taking into account the multi-year import protections in place for key markets.

In contrast, aluminium stocks faced pressure, with National Aluminium Co Ltd shares falling 4% to Rs 362.75 on the NSE.