Tata Steel, Jindal Steel Lead Gains in Metal Stocks as US-China Trade Progress Fuels Optimism

Indian metal stocks traded firm on Tuesday morning, bucking the broader market weakness, as renewed optimism surrounding the US-China trade talks boosted investor sentiment.

At around 11:30 AM, the Nifty Metal index climbed nearly 1% to 10,571 points, emerging as the top gainer among 16 sectoral indices, even as most other indices traded in the red.

Tata Steel and Jindal Steel Shine

Leading the rally were Jindal Steel and Tata Steel, which saw strong buying interest.

• Jindal Steel rose 3.9% to ₹1,073.8, ahead of its Q2 FY26 financial results announcement scheduled for later in the day.

• Tata Steel gained 2.2% to ₹180.6 after Motilal Oswal upgraded the stock rating from ‘neutral’ to ‘buy’.

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Motilal Oswal Upgrade Drives Tata Steel

The brokerage cited a strong domestic demand outlook, improving price realisations, and operational efficiencies as key factors supporting the upgrade. It noted that Tata Steel is expected to generate robust operating cash flow, enabling it to fund its expansion plans without increasing leverage.

Motilal Oswal set a target price of ₹210 per share, based on its September 2027 estimates, signaling potential upside from current levels.

Global Trade Developments Boost Market Mood

The overall uptrend in the sector followed reports that US and Chinese officials have finalised a trade framework for Presidents Donald Trump and Xi Jinping to review later this week. The proposed agreement could potentially pause the imposition of heavier US tariffs and Chinese export curbs on rare earth elements.

This development has eased investor concerns over a possible escalation in the long-running trade tensions between the two global economies, offering a boost to metal and commodity-linked stocks worldwide.

Broader Market Context

While the metal index outperformed most other sectors on the Nifty traded lower amid mixed global cues and cautious investor sentiment. However, analysts noted that the strength in metals could continue if the trade discussions between the US and China yield a positive outcome.

The day’s rally highlighted how global policy signals continue to influence domestic sectoral performance, particularly in export-sensitive industries such as metals.

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