Jefferies remains positive on metal stocks, highlighting that Hindalco (HNDL), JSW Steel (JSTL), and Tata Steel have outperformed the Nifty-50 by 15-20% in 2025 so far. This rally has been fueled by optimism around a China recovery, expectations of a safeguard duty on steel in India, and strong aluminum prices.
The brokerage notes that Asian steel spreads remain 20% below long-term averages, leaving room for further expansion. Additionally, Indian steel prices have risen by 5% since the December trough, and if a safeguard duty is implemented, it could further support margins and boost valuations.
Jefferies maintains buy ratings on Hindalco and Tata Steel, citing strong fundamentals and potential for further upside.
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