BAJAJ BROKING

Notification
No new Notification messages
Inventurus Knowledge Solutions IPO is Open!
Apply for the Inventurus Knowledge Solutions IPO through UPI in just minutes.
Open a Free Demat Account
Pay ZERO maintenance charges for the first year, get free stock picks daily, and more.
Trade Now, Pay Later with up to 4x
Never miss a good trading opportunity due to low funds with our MTF feature.
Track Market Movers Instantly
Stay updated with real-time data. Get insights at your fingertips.

Stocks to Buy in the Metals Sector: A Comprehensive Guide

Listen to our Podcast: Grow your wealth and keep it secure.

0:00 / 0:00

Synopsis:

Explore the booming metals sector with top stock picks like JSW Steel and Hindalco Industries, recommended by Bajaj Broking Research Desk. Learn why these stocks are poised for growth amid global economic recovery and infrastructure development.

Today's stock market is abuzz with opportunities, and the metals sector is shining brightly. As the global economy rebounds and infrastructure development gains momentum, investing in top-performing metal stocks could be a smart move for your portfolio. In this detailed analysis, we'll explore why certain stocks in the metals sector are poised for growth and highlight the best stocks to buy now. Let's dive into the current trends in the share market today.

Market Overview: Share Market Today

The share market today is witnessing a robust performance in the metals sector. The Nifty Metals Index, which tracks the performance of metal stocks listed on the NSE, has shown a remarkable recovery after a period of consolidation. The index is now poised to resume its upward trajectory, targeting an all-time high of 10,200 points. As infrastructure projects and industrial activities ramp up, this resurgence is driven by increasing demand for metals, particularly steel and non-ferrous metals like aluminium and copper.

Why Invest in Metal Stocks?

  1. Infrastructure Boom: The Indian government's push towards infrastructure development is a significant driver for the metals sector. The construction of roads, railways, airports, and other infrastructure projects is expected to boost the demand for steel by approximately 10%.
  2. Rising Demand for Specialty Steel: India's move towards becoming self-reliant in producing specialty steel will elevate its position in the global steel value chain, bringing it on par with advanced steel-making countries like Korea and Japan.
  3. Growth in Non-Ferrous Metals: According to the Investment Information and Credit Rating Agency (ICRA), domestic demand for non-ferrous metals such as aluminum and copper is anticipated to grow by 10% in FY25, supported by stable realizations and moderated input costs.

Top Stocks to Buy in the Metals Sector

Here are our Bajaj Broking Research Desk’s top picks for metal stocks to consider adding to your portfolio. These recommendations are based on a thorough analysis of market trends, company fundamentals, and technical indicators.

1. JSW Steel

  • Market Cap: ₹221,876 Crores
  • Recommended Range: ₹880 - ₹910
  • Target: ₹1040
  • Stop Loss: ₹809
  • Upside: 15%
  • Time Frame: 180 days

Fundamental Outlook: JSW Steel is a leading player in the manufacture and sale of iron and steel products. The company has reported strong domestic volume growth of 14% year-on-year to 5.31 million tonnes in Q1FY25. The reduction in coking coal costs and strategic initiatives like the sale of a 30MTPA slurry pipeline to focus on core steel business further bolster its prospects.

Technical Outlook: The stock is resuming its uptrend after forming a base at long-term trendline support and the 52-week EMA. We expect JSW Steel to reach ₹1040 in the coming months, offering a fresh entry opportunity for investors.

2. Hindalco Industries

  • Market Cap: ₹141,395 Crores
  • Recommended Range: ₹610 - ₹628
  • Target: ₹715
  • Stop Loss: ₹559
  • Upside: 16%
  • Time Frame: 180 days

Fundamental Outlook: Hindalco Industries, part of the Aditya Birla Group, is engaged in the production of aluminum and copper. The company is investing around USD 6.9 billion to expand its production capacities across various locations, positioning itself to capitalize on growth opportunities in the metals market.

Technical Outlook: Hindalco's stock is showing signs of reversal after a corrective phase. The stock is expected to move towards its previous all-time high of ₹715, driven by increasing prices of base metals and strong integrated operations.

Investing in the Metals Sector: A Strategic Move

With the share market today presenting robust opportunities in the metals sector, now is a great time to consider adding these top stocks to your portfolio. The combination of strong demand drivers, government support for infrastructure projects, and strategic company initiatives makes these stocks some of the best stocks to buy in the current market environment.

Investing in the stock market always carries risks, and it's essential to conduct your own research or consult with a financial advisor before making any investment decisions. However, based on the current trends and analysis, JSW Steel and Hindalco Industries stand out as promising candidates for any well-diversified portfolio.

Remember, the stock market today is dynamic, and staying updated with the latest trends and developments is crucial for making informed investment decisions. Happy investing!

Investments in the securities market are subject to market risk, read all related documents carefully before investing.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

Share this article: 

Read More Blogs

Our Secure Trading Platforms

Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading

Bajaj Broking App Download

8 Lacs+ Users

icon-with-text

4.4+ App Rating

icon-with-text

4 Languages

icon-with-text

₹4700+ Cr MTF Book

icon-with-text