From JSW to SAIL, major steel companies' stocks show strong upside

Brokerages bullish on improving cycle and higher prices

Stocks of all major steel companies surged 3-5 per cent on Tuesday on expectations of further increase in prices. As a result, the Nifty Metal index, up 2.8 per cent at 3,963, was among top sectoral gainers. Amongst individual constituents of the metal index, MOIL, NMDC, JSW Steel, Jindal Steel & Power (JSPL), and Tata Steel jumped between 4.3 per cent and 13 per cent.

Over the past three months, too, the Nifty Metal index has outperformed, gaining 21.8 per cent, compared with 6.2 per cent rise in the Nifty50. Domestic demand recovery remains healthy, led by the auto sector and