Jindal Steel, JSW Steel, Tata Steel: Why steel stocks are rising today

Steel stocks such as Jindal Steel Ltd, JSW Steel Ltd, Tata Steel Ltd and Steel Authority of India Ltd  (SAIL) gained up to 5 per cent in Friday's trade amid a broader recovery in the market, a few brokerages suggesting 'Buy' on steel stocks,  and hopes of strong results in coming quarters. Tata Steel climbed 4.64 per cent to hit a high of Rs 199.40. HSBC has reportedly suggested 'Buy' on the stock with a revised target price of Rs 250 from Rs 235 earlier. 

Jindal Steel advanced 4.83 per cent to Rs 1,193. JSW Steel gained 4.85 per cent to Rs 1186.90. SAIL also added 4.17 per cent to Rs 158.50. Macquarie has JSW Steel as its top pick. It reportedly maintained 'Outperform' on Tata Steel with a target price of Rs 222. The foreign brokerage suggested target price of Rs 1,319 on JSW Steel and Rs 1,193 on Jindal Steel. 

JM Financial in a note this week noted that domestic steel prices have soared over the past few months supported by the safeguard duty implemented in late December 2025. It expects ferrous players’ Ebitda per tonne to expand to the tune of Rs 4,500 for the quarter. Jindal Steel and Tata Steel are its top picks in the space. 

Average India HRC price has increased sequentially by Rs 5,900 per tonne, implying recovery of 18 per cent from the trough prior to the duty announcement. Following the HRC prices, rebar soared even higher sequentially. JM Financial said the safeguard duty has helped stabilise domestic pricing and is expected to allow steel mills to gradually pass through higher price during 4QFY26 dispatches. On the raw material side, steel companies have guided for $15–20 per tonne QoQ increase in coking coal consumption cost in 4QFY26.

ICICI Securities said primary players such as Tata Steel, SAIL, JSW Steel and Jindal Steel primarily rely on coking coal and thermal coal for steelmaking in India, with by-product gases like blast furnace gas, coke oven gas, and Corex gas playing a supplementary role in the energy mix for heating.  

A rise in the global cost curve, could allow Indian steel players to implement an Rs 1,000-1,500/te increase in steel prices, mitigating the energy cost hit and potentially improving spreads for BoF-based players, it said. 

"We do not expect any meaningful demand destruction due to the ongoing crisis in steel-user industries, considering majority of India’s energy requirement is dependent on coal (60 per cent), followed by oil (30 per cent), while natural gas accounts for only 6-7 per cent of the energy basket. A prolongation of the war may eventually trigger some demand correction, potentially equating to the production cuts," it said.