Steel Stocks Reach Historic Highs Amid Industry Tailwinds

Indian Steel Stocks Surge to Fresh Highs

Shares of Indian steel companies, including Tata Steel, JSW Steel, and SAIL, rose sharply on Tuesday, driven by a combination of company-specific triggers and improving global dynamics. The rally was supported by strong brokerage optimism on the sector's medium- to long-term outlook.

The gains reflect increasing confidence that India could emerge as a key driver of global steel demand, especially as China's dominance weakens. Tata Steel touched a record high of ₹218.24, while JSW Steel rose 2% to its peak of ₹1305.90. SAIL gained 2.7% to its 52-week high of ₹189.05.

Brokerages believe that favourable macro trends, rising infrastructure spending, and improving profitability could support sustained earnings growth across the sector. This positioning of Indian steel companies is expected to be a structural upcycle rather than a short-term cyclical rebound.

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Global brokerage house Goldman Sachs has turned constructive on the sector, highlighting a structural shift in global steel demand with India at the centre. Goldman Sachs expects India's steel consumption to nearly double to 212 million tonnes by FY32, implying a 6.8% CAGR, supported by infrastructure expansion, urbanisation, and manufacturing growth.

Goldman Sachs initiated coverage on the ferrous sector with a positive stance, naming JSW Steel and Shyam Metalics as top picks, citing strong growth visibility and diversification benefits. The brokerage also expects profitability to improve meaningfully, with EBITDA margins rising through FY28 driven by operating leverage and capacity ramp-up.

Jefferies also struck a bullish tone, pointing to improving global steel dynamics driven by declining Chinese exports and production, which are helping rebalance the market and support pricing power. Jefferies expects Indian steel prices to remain in the range of ₹55,500–56,000 in FY27–28, which is 3–4% below current levels.

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Jefferies forecasts strong EBITDA growth of 30–45% YoY for JSW Steel and Tata Steel in FY27. It also estimates FY27–28 earnings for the companies to be 5–28% above Street expectations.