Tata Steel share rallies 4%: what’s fuelling the surge in India’s metal stocks
Tata Steel’s share continues its excellent performance on Dalal Street as it witnessed another healthy rally of 4% on Wednesday.
Not just Tata Steel shares, stocks of many Indian metal companies traded with considerable gains today as investors are expecting a better financial performance in the June quarter.
Vedanta, National Aluminium, Hindalco, JSW Steel, Jindal Steel and Power (JSPL), and Welspun Corp were among the major stocks that traded higher on Wednesday.
The Nifty Metal index emerged as the top-performing sector on the day, climbing 1.4%, even as the broader market remained subdued with Nifty 50 slipping 0.2%.
Over the past month, metal stocks have clearly outpaced the broader market, jumping 6.5% compared to a 3% gain in the benchmark index.
What’s behind the metal stocks surge?
The recent rally in India’s metal stocks is being fueled by growing confidence in infrastructure investments, favorable government initiatives, and strong global commodity trends.
Prime Minister Narendra Modi-led government has made a new funding push for railways, urban development, and housing.
The sectors that heavily rely on metals have lifted expectations for increased domestic demand for steel and aluminum, providing a direct boost to metal producers.
The bullish signals are also seen in steel futures as they bounced back after encouraging signs from China’s recovering manufacturing sector and rising demand across Western markets.
In April 2025, India introduced a 12% safeguard duty on select steel imports for a period of 200 days.
The measure aimed to shield domestic producers from a flood of low-cost imports, particularly from China, South Korea, and Japan.
The move provided a tailwind for local steelmakers and helped ignite a rally in metal stocks.
Moreover, falling input costs, combined with strong demand from India’s infrastructure and real estate sectors, are likely to bolster profit margins and cushion the impact of any slowdown in global demand.
Tata Steel share price outlook
There’s a fair bit of optimism around Tata Steel’s share price heading into 2025.
Most analysts think the stock has room to run, thanks to the company’s expansion efforts, stable financials, and favorable market trends.
Tata Steel recently rolled out a ₹15,000 crore capex plan for FY26, and with the Kalinganagar expansion nearing completion, production capacity is set to grow, which should also help with margins.
Forecasts point to solid growth in EBITDA and net profits through FY27, helped by a steady rise in return on capital employed.
Technically speaking, the stock is holding above key moving averages, which suggests the bullish momentum is still intact.
It’s currently finding support near ₹153.52, with resistance around ₹168.34.
As for the numbers, most analysts see the stock reaching somewhere between ₹190 and ₹229 by the end of 2025.
And if expansion goes smoothly and the market backdrop stays strong, there could be more upside beyond that.
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