Steel Stocks on Fire: Tata Steel, NMDC JSW Steel, JSPL, Sail Shares Extend Major Gains; Know Why

Steel stocks surged in today's trading session, with major metal stocks extending their sharp rally. The boost came after the Directorate General of Trade Remedies (DGTR) proposed a 12% safeguard duty on specific steel imports, which fueled a rally in steel stocks, with Tata Steel shares gaining 2.5% and JSW Steel shares soaring around 2%.

Top Metal Stocks Gaining Momentum in the Stock Market Today

1. Tata Steel (TATASTEEL)

Tata Steel shares today rose 2.47% and are currently trading at Rs. 158.48. In the past five days, the shares have jumped 3.85%.

Tata Steel Share Price Target: Emkay Global has given a BUY rating on Tata Steel with a target price of Rs.185, citing a potential turnaround across multiple fronts. CLSA has also revised its target price to Rs.145, highlighting the company's significant exposure to flat steel products. With the 12% safeguard duty in place, Tata Steel's fair value is estimated to increase by 10%, strengthening its market position.

2. Steel Authority of India Limited (SAIL)

SAIL, India's largest state-owned steel producer, has gained massively today due to strong domestic demand. Shares of SAIL today spiked 3.80% to trade at Rs. 113.05 apiece on the NSE. SAIL's share price has risen about 6.12% in the last month.

SAIL Share Price Target: SAIL has been rated as ADD by Emkay Global, with a target price of Rs. 120. While the company is a key player in the domestic steel industry, its exposure to flat steel products is relatively lower, which may result in a more modest impact from the safeguard duty.

3. NMDC (National Mineral Development Corporation)

NMDC, primarily engaged in iron ore mining, plays a crucial role in the steel industry. NMDC's share price rose almost 7% today. Currently NMDC shares are trading at Rs. 67.36 with a rise of 0.88%. Shares have been rising 3.71% this week. NMDC's dividend was declared this week, which increased investor sentiments.

4. JSW Steel (JSWSTEEL)

JSW Steel shares today are trading at Rs. 1,030.30 apiece at the time of writing, up by 1.20%. Over the past month, the stock has gained 5.42%, while its year-to-date (YTD) performance stands at an impressive 13.79%.

JSW Steel Share Price Target: Emkay Global has maintained an ADD rating on JSW Steel, setting a target price of ₹1,100. Meanwhile, CLSA has raised its target price to ₹825, citing multiple growth catalysts. Given its higher exposure to flat steel products, the 12% safeguard duty is expected to boost JSW Steel's fair value by 7%. This makes the stock a key beneficiary of the recent policy changes.

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5. Jindal Steel & Power (JSPL)

Jindal Steel & Power Ltd. (JSPL) shares today surged almost 3% and are currently trading at Rs.924.65, with a rise of 0.12%. Over the past five days, the stock has gained 2.08%.

JSPL Share Price Target: Emkay Global has taken a cautious stance on JSPL, giving a REDUCE rating with a target price of ₹825. CLSA notes that the safeguard duty will have a relatively muted impact on JSPL, with its fair value estimated to rise by only 3% compared to its peers. This suggests limited upside potential in the near term.

Why Are Steel Stocks Rallying?

The latest uptrend in metal stocks is mainly fueled by a significant move by the Directorate General of Trade Remedies (DGTR), which has proposed a provisional 12% safeguard duty on flat steel products for 200 days as per the 18th March report. This is pending further investigation and a final decision. The industry had initially demanded a 25% safeguard duty, but even this proposed measure is seen as a protective step against cheap imports that have been putting pressure on domestic steelmakers.

Additionally, the demand for steel in India has been increasing, particularly from the infrastructure, construction, and automobile sectors. Government-led infrastructure projects and the expansion of manufacturing industries have contributed to a steady rise in steel consumption, supporting stock prices of major steelmaking companies.