Shares of Tata Steel Ltd gained 2.73% on Monday, September 8, to trade at ₹172.25 on the NSE, following a bullish note from global brokerage Morgan Stanley on the domestic steel sector.
The brokerage said it has turned more constructive on the sector, expecting steel prices to expand as demand improves and global macro conditions become more favourable. It highlighted that China’s “anti-involution” theme is also gaining traction, supporting a stable pricing environment globally.
As a result, Morgan Stanley raised its steel price estimates by 3% each for FY27 and FY28 and expects select Indian steel stocks to outperform the broader materials sector over the coming months.
Key Rating Changes
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JSW Steel: Upgraded to Overweight, target raised to ₹1,300 per share.
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Tata Steel: Upgraded to Overweight, target raised to ₹200 per share.
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SAIL: Upgraded to Equal-weight, target raised to ₹140 per share.
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JSPL: Maintained Equal-weight, target raised to ₹1,150 per share.
Morgan Stanley noted that improving domestic demand, combined with a favourable global macro backdrop, underpins its positive outlook for the sector. It expects Tata Steel and JSW Steel to lead gains in the near term, while SAIL and JSPL are likely to track broader market moves.
Investor sentiment in Tata Steel turned positive on the upgrade, with the stock hitting an intraday high of ₹172.50, close to its 52-week peak of ₹172.62.
