Tata Steel, Jindal Steel lead gains in metal stocks as US-China trade progress fuels optimism

Indian metal stocks traded firm on Tuesday morning, defying a broader market decline, as optimism around renewed US-China trade talks lifted investor sentiment. The Nifty Metal index rose nearly 1 percent to 10,571 points at around 11.30 am, making it the top gainer among 16 sectoral indices, while most others traded in the red.

Jindal Steel and Tata Steel stocks led gains, rising 3.9 percent and 2.2 percent, respectively.

The uptrend followed reports that US and Chinese officials have finalised a trade framework for Presidents Donald Trump and Xi Jinping to consider later this week, potentially halting plans for heavier US tariffs and Chinese export curbs on rare earths. The development eased some investor concerns over a possible escalation in trade tensions.

Jindal Steel stock rose 3.9 percent to Rs 1,073.8. The company is due to declare its Q2 FY26 financial results later today.

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Tata Steel shares rose 2.2 percent to Rs 180.6, after Motilal Oswal upgraded its rating on the stock to ‘buy’ from ‘neutral’. The brokerage firm cited a strong domestic outlook, improving price realisations, and operational efficiencies. It said Tata Steel is expected to generate robust operating cash flow to support its ongoing expansion without increasing leverage, and set a target price of Rs 210 per share based on its September 2027 estimates.

Other gainers included SAIL, up 2.1 percent, Hindalco, up 1 percent, and JSW Steel, up 1.15 percent. On the downside, Hindustan Zinc fell over 2 percent, while Vedanta, Hindustan Copper, Jindal Stainless, and Lloyds Metals also traded lower.