Nifty Metal Index Rises Over 2%; SAIL, Welspun Corp Lead Gains

The Nifty Metal index was among the top-performing sectoral indices on Wednesday, rising more than 2% as steel-related stocks advanced. At 02:05 pm, the Nifty Metal index was up 2.15% at 13,269.65, compared with a 0.40% rise in the Nifty 50. The index had previously touched a 52-week high of 13,931.35 on 15 June 2026.

Steel Authority of India Limited (SAIL), Tata Steel Limited, Welspun Corp Limited, and Jindal Stainless Steel Limited were among the leading gainers, up by over 3%. Hindalco Industries Limited, and JSW Steel Limited also moved higher by over 2%.

On the National Stock Exchange (NSE), SAIL shares were trading at ₹184.78, up 6.19% at 02:12 pm on Wednesday. The stock opened at ₹174.50, against the previous close of ₹174.01, and touched a high of ₹184.72 and a low of ₹174.50.

At that time, Welspun Corp shares were trading at ₹2,823.60, up 3.40%. The stock opened at ₹2,740.50, compared with the previous close of ₹2,731.50, while the day's high and low stood at ₹2,836 and ₹2,736, respectively.

SAIL Gains Support From Rating Upgrade And Expansion Plans

India Ratings and Research (Ind-Ra) upgraded SAIL's long-term issuer rating and debt instruments to IND AA+ with a stable outlook from IND AA on 3 September 2026. The company's earnings before interest, tax, depreciation and amortisation (EBITDA) had also improved in the June 2026 quarter. The cost-reduction measures are expected to support operating performance.

Availability of raw materials to improve with the operationalisation of Tasra and Rowghat mines scheduled in FY27-FY28. It might also support profitability through sales of surplus iron ore. SAIL plans to ramp up capacity between FY27 and FY31, which could further increase sales volumes.

Domestic Steel Prices Rise Amid Demand And Cost Pressures

Despite the seasonally softer quarter, domestic steel prices went higher. The rise was due to lean inventories in the channel after maintenance shutdowns, improved consumption in July-August 2026 relative to April-May 2026 and higher input costs. Tata Steel’s India unit is expected to publish good earnings for the September quarter.

The pricing discipline will remain important for sustaining margins because the effect of current cost inflation could emerge with a lag in the second half of FY27. It remained constructive on Tata Steel, citing capacity expansion, favourable steel prices and resilient demand.

A gradual stabilisation and turnaround in Tata Europe's operations could create an earnings and re-rating opportunity.

Indian Steel Demand To Grow Through 2027

India's steel demand is projected to grow 7.4% in 2026 and 9.2% in 2027, according to World Steel Association metrics cited in SAIL's FY26 annual report. Infrastructure-led construction, automotive demand, capital goods investment, railway expansion and consumer durables are identified as key demand drivers.

India’s Steel Policy 2047 intends to create 500 million tonnes (MT) of structural steel production capacity by that year. There is an interim target of 300 MT by FY2030-31. The policy also aims to promote green steel production through automation and decarbonisation and reduce reliance on imported coking coal.

The FY2026-27 Union Budget's focus on high-speed rail networks, inland waterways and continued public capital expenditure is also expected to support long-term steel demand.

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