India's steel sector set for strong returns on pricing comfort, safeguard duties, Morgan Stanley says

Steel Authority of India

21/01/2026 09:38

** Strong returns in India's steel sector are likely to continue as domestic steel prices still have room to rise, says Morgan Stanley

** Raises steel price assumptions by about 5% for FY27 and FY28

** Nifty metal index .NIFTYMET rose 29.1% in 2025, outperforming the Nifty 50's .NSEI 10.5% rise

** NIFTYMET is up 2.2% in 2026 so far compared to 3.8% drop in NSEI

** Brokerage says India hot-rolled coil prices remain below import parity levels despite the recent rebound, supporting further price upside

** Adds, steel spreads should stay firm, backed by government's safeguard duties, firmed demand signals from top consumer China, and a supportive global macro backdrop

** Recent gains in steel stocks have been driven by improving earnings visibility and stronger pricing, says MS; sees scope for further outperformance

** Upgrades Jindal Steel JINT.NS to "overweight", downgrades SAIL SAIL.NS to "underweight" and maintains "overweight" ratings on Tata Steel TISC.NS and JSW Steel JSTL.NS

** JINT up 0.11%, SAIL up 0.6%, TISC up 0.45% and JSTL up 1.22% on the day

 (Reporting by Surbhi Misra in Bengaluru)

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