On Wednesday, Indian metal stocks surged as investors responded to expectations of firmer global steel prices, fueled by China’s planned production cuts and India’s tariff protections.
Analysts at CLSA believe steel prices are likely to strengthen, supported by seasonal demand and a broader global recovery. They highlighted China’s new “anti-involution” strategy — aimed at curbing excessive competition — as a potential boon for Indian producers. The world’s largest steelmaker, China, is expected to cut output by 50 million tons in 2025, an 8.5% reduction for the remainder of the year. Notably, output had already declined by 20 million tons between January and July, even as export volumes soared to record levels.
Despite today’s minor pullback, Tata Steel remains near its 52-week high of Rs 170.18, reflecting solid recent momentum. Over the past year, the stock has delivered an 11% return, indicating stable performance. With a current market capitalization of Rs 2,08,599 crore, the company continues to be a key player in India’s steel industry.
According to data from Trendlyne, the consensus recommendation from 31 analysts for Tata Steel is a “Buy”, indicating strong positive sentiment around the stock’s prospects.
On the technical front, the 14-day Relative Strength Index (RSI) stands at 64.0, suggesting bullish momentum without being in overbought territory (RSI above 70 is typically considered overbought, while below 30 is oversold).Additionally, Tata Steel is showing strong technical strength by trading above all 8 key Simple Moving Averages (SMAs) — from the 5-day to the 200-day SMA — which is a bullish indicator and reflects a sustained upward trend.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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