Tata Metal shares soar 12% up to now in April. Right here’s why Nomura stays bullish on India’s metal sector
In a observe launched on Monday, Nomura stated it maintains a constructive outlook on the sector, including that international elements, together with the influence of Chinese language competitors, are more likely to have a restricted impact on the earnings potential of main metal gamers. “Our bullish stance on the Indian metal sector is underpinned by bettering home value momentum regardless of international headwinds,” it stated.
The battle between the US and Iran, and the following closure of the Strait of Hormuz, triggered an vitality disaster that rattled international markets in March. Nomura believes massive, blast furnace-based metal gamers are comparatively higher positioned than smaller, gas-based DRI producers, as they’ll partially substitute LPG utilization with options in downstream operations.
Within the absence of any vital disruption or sustained value escalation up to now, the brokerage has maintained its earnings estimates for shares underneath its protection. It has reiterated its ‘Purchase’ rankings on Tata Metal, JSW Metal, Jindal Steeland Lloyds Metals.
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Nomura has set a goal value of Rs 220 apiece for Tata Metal shares, implying an upside potential of practically 4% from the inventory’s final closing value of Rs 211.72 apiece.
The worldwide brokerage famous that Indian metal costs barely corrected final week, however stay close to elevated ranges. “China’s metal sector witnessed a notable slowdown with metal manufacturing in March 2026 declining by 6.3% y-y to 87.04MT, marking the bottom stage for the month since mid-2020. The weak spot prolonged to commerce flows as metal exports fell by 12.6% y-y to 9.13MT, partly impacted by disruptions from the Center East battle,” it stated.
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