Indian Metal Stocks Shine: Tata Steel, JSW Steel, Hindalco Rally as US Suspends Tariffs

The Indian metal sector experienced a significant upswing on Friday, April 11, 2025, with the Nifty Metal index surging over 4% on the National Stock Exchange (NSE). This rally was primarily triggered by the US government's decision to temporarily suspend the 26% reciprocal tariffs on Indian goods until July 9, 2025. While the base tariff of 10% remains in effect, the suspension offered a much-needed boost to market sentiment.

Key Performers

Several metal stocks witnessed substantial gains during intraday trading:

• Lloyds Metals and Energy (5.86%)
• Tata Steel (5.07%)
• Hindalco Industries (6.70%)
• JSW Steel (5.01%)
• Jindal Stainless (5.02%)
• Steel Authority of India (SAIL) (3.29%)
• Vedanta (3.04%)
• Jindal Steel and Power (3.03%)

These stocks rallied in the range of 3% to 7% on the NSE, contributing to the overall positive momentum in the metal sector.

Market Dynamics

At 13:30 PM, the Nifty Metal index, leading the sectoral indices, was up by 4.62%, significantly outperforming the Nifty 50 index, which saw a 2.1% increase. Both the Nifty Metal and BSE Metal indices mirrored this trend, rallying by 4.49% each during intraday trade. Despite this recent surge, the BSE Metal index has underperformed the broader market over the past five trading days, declining by 5% compared to a 0.69% decrease in the BSE Sensex. This highlights the sector's recent volatility and sensitivity to global economic cues.

Domestic Steel Price Hike

In a separate development, local steel mills have increased prices of hot rolled coil (HRC) by ₹1,500 to ₹2,000 per tonne this week. This price hike follows a sharp decline in steel imports into India, according to ICICI Securities. The brokerage noted that total Indian steel imports decreased to approximately 0.3 million tonnes in March 2025, compared to over 0.4 million tonnes in both January and February 2025.

Consequently, domestic steel prices have risen by nearly ₹5,000 per tonne from a four-year low of ₹47,000 per tonne, now quoting at ₹52,000 per tonne. ICICI Securities anticipates healthy margin recovery for domestic steel players from Q4FY25 onwards, driven by the gradual recovery in steel prices and lower raw material costs.

Conclusion

The Indian metal sector is currently navigating a complex landscape of fluctuating global trade dynamics and domestic economic factors. The temporary suspension of US tariffs has provided short-term relief, but underlying concerns about oversupply and global economic slowdown persist. Investors are advised to exercise caution and monitor developments closely.

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.

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