SAIL vs Tata Steel vs JSL vs Jindal Steel vs Vedanta: Which Metal Stock To Buy?

Nifty Metal outshone its peers after surging by more than 2.5% as a softer dollar made commodities cheaper for overseas buyers during the last trading session. The metal stocks rally was fuelled by the remarkable performance of Steel Authority of India Limited, Tata Steel, Jindal Stainless Steel Limited, National Aluminium Company Limited (NALCO), Hindustan Zinc, Vedanta, etc.

SAIL shares closed with a gain of 4.56%, whereas Tata Steel shares ended 4% higher at Rs 159.25 per share, NALCO shares closed 3.6% higher close to around Rs 186 apiece.

The surge in metal sector stocks was the result of a combination of favourable factors, with the softer US Dollar being the prime reason for the recent metal stock rally. The weaker Dollar made metal commodities lucrative and profitable for overseas buyers.

"Iron ore futures rose over 3% on the Dalian Commodity Exchange to ¥894/tonne, amid renewed optimism around China's infrastructure stimulus and better-than-expected activity in its manufacturing sector. The Caixin Manufacturing PMI rose to 51.1 in July, marking a six-month high and signalling expansion in the world's largest steel-consuming economy (Caixin, Aug 1)," stated Anirudh Garg, Partner and Fund Manager, INVasset PMS.

Will Metal Stocks Rally Continue Today?

The sharp surge in hot rolled coil steel prices (HRC prices) over the past few days reflect a further improvement in the global steel prices. Despite a dull quarter for Indian steel producers because of the monsoon, the reduction in Chinese steel overproduction can reduce steel imports to India and improve pricing for domestic players, according to Aparna Shankar- CIO, Equity, The Wealth Company Mutual Fund.

"Chinese HRC prices have recently shown strength supported by plans for Chinese government initiatives to tackle overproduction by Chinese steel mills. Reductions to Chinese overproduction can be expected to reduce steel imports to India, improving pricing for domestic players. This improvement in prices also comes on the back of recent strong results by Indian steelmakers. Cost guidance by Indian mills also points to iron ore and coking coal prices remaining flat to falling slightly for 2Q FY26. India's temporary 12% safeguard duty introduced in April has also helped steelmakers regain pricing power. The possibility of an interest rate cut by the Federal Reserve also keeps the global macro environment supportive for higher commodity prices," noted Shankar.

Metal Stock Target Price

Given strong rally in metal stocks, here are top metal sector recommendations with target price, and return by Antique Stock Broking for long-term.

Company	Reco	CMP	TP	Return (%)
APL Apollo Tubes	Buy	1,586	1,897	20
Hindalco Industries	Buy	688	798	16
Hindustan Zinc	Hold	422	482	14
Hi-Tech Pipes	Buy	90	129	43
Indian Hume Pipe	Buy	417	544	30
Jindal Steel & Power	Buy	980	1,013	3
JSW Steel	Hold	1,056	942	(11)
JTL Industries	Buy	70	86	23
Kirloskar Ferrous	Buy	555	641	15
MOIL	Buy	347	452	30
NALCO	Buy	187	265	42
NMDC	Buy	72	86	20
SAIL	Hold	125	129	3
Tata Steel	Buy	160	174	9
Venus Pipes	Buy	1,392	1,785	28
Vedanta	Hold	431	482	12

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.