Jefferies hikes target price of Tata Steel, JSW Steel, and Hindalco.
Story continues below Advertisement Remove AdJefferies upheld "buy" ratings on Tata Steel and Hindalco Industries stocks but raised target prices.
Tata Steel's target price has been increased to Rs 200 from Rs 165, a 20 percent upside from the closing price on April 9.
Hindalco's target price has been raised to Rs 700 from Rs 610, again almost 20 percent higher from the April 9 close.
In the US, the manufacturing sector witnessed growth for the first time in 18 months, as reported by the ISM.
Jefferies hikes target price of Tata Steel, JSW Steel, and Hindalco.
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Jefferies is bullish on Indian metal companies amid the recent resurgence in the global manufacturing activity, including in the US and China, the world's two biggest economies. In a recent note, the brokerage firm said it had constructive views on the sector, particularly copper and aluminium.
On April 9, the Nifty metal index surged over a percent, closing at 8,894.4 to take the top spot among sectoral indices.
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Jefferies upheld "buy" ratings on Tata Steel and Hindalco Industries stocks but raised target prices. Tata Steel's target price has been increased to Rs 200 from Rs 165, a 20 percent upside from the closing price on April 9. Hindalco's target price has been raised to Rs 700 from Rs 610, again almost 20 percent higher from the April 9 close.
The brokerage has retained "hold" call on JSW Steel but has raised the target price to Rs 900 from Rs 800, implying a 3 percent upside from April 9 close.
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Analysts attribute the positive sentiment in metal stocks to the notable rise in manufacturing activities reported by China and the US. With these two countries being major consumers of metal, an increase in manufacturing activity would translate to a heightened demand for metal.
In the US, the manufacturing sector witnessed growth for the first time in 18 months, as reported by the ISM. Its US manufacturing PMI surged to 50.3 in March from 47.8 in February, marking its highest reading since September 2022.
Similarly, China's manufacturing activity expanded in March for the first time since September, indicating stabilisation for the world's second-largest economy. China's PMI rose to 50.8 in March from 49.1 in February, surpassing the forecast of 49.9 in a Reuters poll. Despite challenges in the property sector, this data provides some relief to policymakers and boosts confidence in the economy.
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