The Nifty steel sector’s sharp improvement is largely driven by China’s steel PMI rise to 54.6 in October, indicating expansion and bolstering global demand. This growth has benefited top players like JSW Steel Ltd, Steel Authority of India Ltd, and NMDC Ltd. Expected import duties further support a positive sector outlook.
Heavyweight Stocks Lead the Improvement:
JSW Steel Limited Limited
JSW Steel shares ended the day on a strong note, closing at ₹998.5, reflecting a significant rise of 4.57%. The stock’s last traded price stood at ₹999.50, showcasing robust performance in today’s session and highlighting investor interest in the steel major’s growth momentum. This upward trend underscores positive market sentiment around the company’s recent developments and future prospects.
Tata Steel Limited
Tata Steel Limited saw its stock price rise by 3.74% today, reflecting positive momentum in the trading session. This notable increase underscores strong investor sentiment and renewed interest in Tata Steel, driven by the company’s stable growth outlook and its significant role in the steel industry.
NMDC Limited
NMDC Limited saw its stock price rise by 3.09%, driven by an increase in iron ore production, which climbed nearly 4% in October. The stock has shown robust performance, rising 45.3% over the past year, reflecting strong investor confidence in NMDC’s operational and market growth trajectory.
Why The Sharp Improvement?
The sharp improvement in the steel sector can be attributed largely to China’s national steel PMI, which rose by 5.6 points to 54.6 in October, showing expansion for the first time since March 2023. This boost reflects increased steel demand and production optimism, pushing up steel prices globally.
Further, there’s anticipation of potential duties on steel imports, which surged to 3.18 MT in the September quarter, widening the import-export gap. These factors strengthen market confidence and highlight a positive growth outlook for the steel sector.
Sector-Specific Optimism:
The steel sector’s sharp improvement is fueled by China’s national steel PMI increase to 54.6 in October, showing expansion and boosting global demand and prices. Anticipated duties on rising steel imports, along with expected margin improvements in H2, strengthen sector-specific optimism and reinforce a positive growth outlook.
