Metal stocks surged on Thursday as brokerages retained their positive outlook on the space going ahead. The rise is aided by rising steel prices, better production and improved earnings outlook for the March quarter.
The Nifty Metal index was up over 2 percent in trade today in comparison with a 0.7 percent rise in benchmark Nifty. The metal index has also outperformed Nifty in 2021 YTD as well as in the last 1 month.
In 2021 YTD, the Nifty Metal index has risen over 37 percent as compared to a 6 percent rise in Nifty while in the last 1 month it has advanced over 14 percent versus a half a percent decline in the benchmark.
Credit Suisse, in a recent report, noted that the Indian Steel pricing has risen $40 per tonne this week in the trader’s market. It expects steel prices to remain elevated on-demand recovery, shortage and cost-push. The brokerage prefers Tata Steel and JSPL in the space.
Meanwhile, Citi raised the FY22 EBITDA estimate by 12-20 percent for steel companies like JSW Steel, JSPL and SAIL on the back of rising in HRC prices.
Post the brokerage reports, JSPL and JSW Steel rose around 6 percent each in intra-day deals while Tata Steel and SAIL added over 4 percent each.
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– Metals stocks surge as brokerages remains positive on the sector; Nifty Metal up 37% in 2021 YTD
– JSW Steel share price touches 52-week high on better production in Q4FY21
– JSW Steel output up 6% in Q4
– JSW Steel Q4 production up 6 pc at 4.2 million tonnes
– Nifty Metal skyrockets 2% in an aftermath of monthly production data; JSPL, SAIL, JSW Steel top gainers
– JSW Steel production rises 6% YoY in Q4
– JSW Steel achieves crude steel production of 4.19 mn tons in Q4FY21
– JSW's crude steel output down six percent in FY 2020-21