Metals Stocks Surge In Trade; JSW Steel And JSPL Reach 52-Week High — Here's Why

Metals stocks rallied on Tuesday's trade, with sector heavyweights hitting trading with strong gains and even reaching fresh highs following Nomura's note, which predicted production cuts in China and seasonal demand recovery.

JSW Steel Ltd. has led the sectoral rally, reaching a 52-week high of Rs 1,148. The stock is currently trading with gains of more than 2%.

Its peer Jindal Steel & Power Ltd. is also buzzing in trade today, reaching a 52-week high of Rs 1,069 and is currently trading with gains of more than 3%.

In a latest note, Nomura had hiked the target price of both Jindal Steel and JSW Steel, citing key tailwinds for the metals space while affirming these two stocks as the best-placed companies to take advantage of these tailwinds.

Shares of Hindustan Copper Ltd. are also buzzing, gaining more than 3% on trade, though this may be on the back of strong sentiment surrounding copper, which is being proclaimed as the 'new gold' in the age of AI.

A few other stocks gaining in trade on Tuesday include Adani Enterprises Ltd and Jindal Stainless Ltd, with both the counters surging more than 1.5%. The Nifty Metal index itself is trading with gains of 1.12%.

The positive sentiment around the metal stocks stem from the Nomura note on steel sector, which predicted production cuts in China, as part of the country's anti-involution push.

The brokerage firm also predicted that steel prices could rise as much as 5% above current levels, supported by improving demand scenario in India.

Nomura's price target upgrades on Jindal Steel and JSW Steel also played a role in driving both the counters to 52-week highs. Adani Enterprises and JSL have also gained on the back of this note.

As for Hind Copper, the company has been gaining sharply, especially after announcing capacity expansion plans earlier in the month. The stock is up more than 30% over a one-month period.

Independent market analyst Ambareesh Baliga recently told NDTV Profit that "copper is the new gold", citing increased demand due to the onset of AI data centres.