Jindal, Tata Steel rally up to 4%, near record highs; JSW Steel at new high

Motilal Oswal Financial upgrades Tata Steel from Neutral to BUY with a target price of ₹210 per share, while InCred Equities upgraded SAIL's rating to ADD from REDUCE, with a target price of ₹158.

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Share price of Tata Steel, Jindal Steel, JSW Steel today

 

Shares of steel companies were in demand with Tata Steel, JSW Steel, Jindal Steel and Steel Authority of India (SAIL) gaining between 2 per cent and 4 per cent on the BSE in Tuesday’s intra-day trade in an otherwise weak market. In comparison, the BSE Sensex was down 0.66 per cent at 84,222 at 02:28 PM.

 

Among individual stocks, JSW Steel hit a record high of ₹1,183.75, gaining 3 per cent on the BSE in intra-day trade. Jindal Steel rallied 4 per cent to ₹1,077.95, and was trading close to its record high level of ₹1,097.10 touched on June 21, 2024. Tata Steel also quoted near to its all-time high level of ₹184.60 hit on June 18, 2024. The stock price of Tata Group company advanced 3 per cent to ₹182 in intra-day trade.

 

What's driving steel stocks?

 

According to media reports, China has announced a stricter steel capacity swap plan to control overcapacity and stabilise supply and demand. The plan requires 1.5 tons of old capacity to be removed for every 1 ton of new capacity added. It also bans capacity additions or transfers in key regions such as Bejing-Tianjin-Hebei and the Yangtez River Delta.

 

These measures are sentimentally positive for the domestic steel industry, as restrictions on new capacity additions or reducing old steel capacity could help reduce steel production and curb rising steel imports, thereby providing stability to domestic steel prices, ICICI Securities said in a note.

 

However, it is important to note that despite China’s steel production declining by 4.6 per cent year-on-year (YoY) during the April 2025 to September 2025 period, exports remained at all-time high levels. Nonetheless, the brokerage firm remains positive on the domestic steel sector, with a preference for Tata Steel, supported by its ongoing capacity expansions, robust domestic steel demand, and continued focus on cost optimization.

 

Meanwhile, Motilal Oswal Financial Services upgraded Tata Steel from Neutral to BUY with an SOTP-based target price of ₹210 per share basis Sep'27 estimate.

 

Tata Steel is one of the largest players in India's steel sector and is set to benefit from improving steel price realizations, operating efficiencies, and the strong domestic demand outlook. The implementation of the safeguard duty is expected to help domestic operations achieve better realization. 

 

While near-term challenges persist due to global uncertainty around tariff escalations, the long-term outlook for Tata Steel remains strong. The Indian business is expected to continue its strong performance, and an improvement in the European business performance is likely to support overall earnings, the brokerage firm said in the company update.

 

Analysts at InCred Equities upgraded SAIL’s rating to ADD (from REDUCE), with a revised target price of ₹158 (₹77 earlier). Although the brokerage firm said they continue to believe that the global steel industry lacks structural pricing power, the current wave of protectionism across key markets—especially in India, Europe, and the US—has removed the downside risk to earnings. 

 

Steel prices are unlikely to fall meaningfully, and the modest recovery in global demand, led by Europe, should support a stable pricing environment. In this setting, SAIL stands out as a tactical play on protectionist stability rather than a cyclical upswing, the brokerage firm said in the company update.