Steel stocks shine on higher demand hopes, driven largely by exports

Analysts at BofA Securities have turned positive on the Indian steel sector due to higher steel prices and improving China's steel demand outlook

Shares of metal companies, mainly steelmakers, soared on Wednesday spurred by hopes of improvement in demand after China’s manufacturing activity in July expanded at the fastest pace in nearly a decade, indicating significant recovery there from the Covid-19 crises. 

Further, encouraging data on sales at Steel Authority of India (SAIL) in July, too, boosted sentiment. The Nifty Metal Index jumped over 4 per cent to settle at 2,269. Tata Steel gained 6.6 per cent to end at Rs 397, while SAIL ended 6 per cent higher at Rs 37. JSW Steel rose 3 per cent to Rs 235. 

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