July Metal Sector Outlook: SEBI RA Flags JSW Steel, Tata Steel, Welspun, Vedanta As Top Picks

The Indian metal sector has been gaining traction, supported by infrastructure spending, firm domestic demand, and favorable global cues.

SEBI-registered analyst Srinivasa Reddy outlined a bullish outlook for July, noting the Nifty Metal Index rose 1.16% intraday to 9,675.95 on Wednesday, with 12 of 15 constituents advancing. 

Reddy attributed the sector’s momentum to four key drivers: ongoing infrastructure projects, a recovery in China’s manufacturing output, capacity expansion by leading companies, and policy support such as the production-linked incentive scheme for specialty steel and proposed safeguard duties on steel imports.

According to Reddy, recent strong fourth-quarter earnings from Tata Steel and Vedanta have reinforced sentiment. 

The Nifty Metal Index has gained 4.04% over the past 30 days and now sits just 6.2% below its 52-week high.

Among stocks, Reddy highlighted Welspun Corp for its export orders and ongoing capacity expansion.

JSW Steel was flagged for its aggressive capacity plans and focus on green steel.

Reddy has set a bullish price target of ₹1,200 on JSW Steel by September 26, starting from ₹1,058.20.

Tata Steel was noted for its integrated operations and emphasis on value-added products.

Jindal Steel & Power was recognized for its green steel initiatives and efficiency improvements.

SAIL drew attention for benefiting from government support and downstream investments.

Hindalco stood out for its strong position in the aluminum segment.

Nalco was highlighted due to favorable global aluminum price trends.

Vedanta was mentioned for its recent performance and expansion in the zinc and aluminum sectors.

Reddy named JSW Steel, Tata Steel, Hindalco, NALCO, Vedanta, and Welspun Corp as his top picks for the medium term, pointing to their strong positioning in India’s infrastructure and manufacturing growth. 

He added that their global exposure and expansion plans put them in a good spot to benefit from the current metal upcycle.

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