Hi-Tech Pipes shares gain over 7% on rub-off effect after RBI's surprise 50 bps rate cut; SBI Securities see 44% upside potential

Stock gains in intraday trade today.

Shares of Hi-Tech Pipes surged more than 7 percent on Friday, driven by positive sentiment following the Reserve Bank of India’s 50 basis points (bps) rate cut, which lifted broader market indices and sparked buying across interest rate-sensitive and metal stocks. Additionally, SBI Securities tagged its ‘Buy’ rating on the smallcap counter.

The RBI’s decision to slash the policy repo rate by 50 bps provided a strong trigger for sectors like real estate and metals. The Nifty Metal index rose 1.4 percent, supported by hopes of increased demand from construction and infrastructure segments.

Analysts said that the larger-than-expected rate cut is likely to bring relief to new home buyers and revive housing demand, leading to a rally in realty counters. The Nifty Realty index jumped over 4 percent, with the optimism spilling over to metal stocks due to their key role in real estate development.

Hi-Tech Pipes, which manufactures steel tubes and pipes, benefited from this rub-off effect and positive brokerage commentary. SBI Securities tagged its ‘Buy’ rating on the smallcap counter, citing strong operational performance in the March quarter of FY25.

"We believe the company is well-positioned to capitalise on improving demand trends across end-user industries. We estimate a potential upside of nearly 44 percent from current levels," the brokerage said, setting a target price of Rs 138 per share.

Other major gainers in the Nifty Metal index included JSW Steel, which jumped over 4 percent to Rs 1,010, while Jindal Stainless rallied more than 3 percent. Hindustan Zinc gained nearly 2 percent, aided by rising silver prices.

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