Tata Steel, JSW ,Vedanta, Hindalco, SAIL share price rise up to 7%: Amongst top Nifty-50 gainers as metals pack shines

Tata Steel, JSW Steel ,Vedanta, Hindalco, SAIL share price rise up to 4%. Tata Steel, Hindalco with gains of more than 1% were among top Nifty-50 gainers. Vedanta however saw its share price rise more than 7%

The analysts say that the expectations of China demand pickup led by some positive cues on China Data has lifted sentiments for the metals pack.

Base metal prices as those of of Copper Aluminium have risen on the London Metal Exchange driving the earning prospects of Non ferrous companies as Hindalco , Vedanta , Nalco.

Hindalco Industries Vedanta Ltd , National Aluminium Company (NALCO) have seen their share price rise 19-42% since their March lows.

Analysts at Jefferies India Pvt Ltd in their report dated 9th April have said that “The recent recovery in global PMIs, including in China, is driving optimism for a potential acceleration in demand growth for commodities”. Jefferies global metals & mining team remains constructive on the sector with preference for copper and aluminum, highlighted the report.

The same is positive news for domestic manufacturers as Vedanta, Hindalco and Nalco.

The Jefferies analysts have raised their FY25-26 earnings per share estimates for Hindalco by 9-15%.

The rating agency ICRA in their outlook for non ferrous sector also had said that in FY2025, industry earnings are expected to stay steady at 17.5-7.5% due to consistent realization and a slowdown in input prices.

ICRA anticipates domestic demand to expand at a robust rate of approximately 10% in FY2025, considerably exceeding the anticipated growth of approximately 2% in global demand. Like the levels predicted in FY2024, the operating margin of local manufacturers is likewise expected to stay steady in FY2025 at 17–17.5% and ICRA continues to have a stable view for the industry as a result.

As the good outlook on Non-Ferrous metals demand and profitability is positive for Hindalco , Vedanta , Nalco , there is some optimism around ferrous pack too

The global steel demand pick up is being anticipated due to favorable PMI data from China, Nevertheless international steel prices still are to show significant uptick.

The pick up in global demand led by China is important for domestic steel manufacturers too. Though India demand is strong, weak international and China prices put pressure on domestic steel prices.

For now analysts remain cautiously optimistic as they are watchful on recovery in steel prices.

Meanwhile China demand recovery can lift outlook for Iron-ore and Coal demand and prices. The share prices of NMDC Ltd and Coal India are reflecting the same.

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