Why Is Morgan Stanley Turning More Bullish on Indian Steel Stocks Now?
Morgan Stanley’s Latest Steel Calls
Morgan Stanley has sharpened its positive stance on the Indian steel sector, upgrading select stocks and raising target prices across the board. The brokerage believes steel’s strong performance cycle is far from over, supported by pricing power, policy tailwinds, and favourable global dynamics.
The highlight of the update is a major upgrade for Jindal Steel & Power, alongside target price hikes for JSW Steel and Tata Steel, while Steel Authority of India faces a downgrade on relative positioning.
Stock-wise Rating Actions
🔹 JSPL: Upgraded to Overweight from Equal-weight; target price raised to ₹1,250 from ₹1,150
🔹 SAIL: Downgraded to Underweight from Equal-weight; target price at ₹140
🔹 JSW Steel: Maintain Overweight; target price raised to ₹1,330 from ₹1,300
🔹 Tata Steel: Maintain Overweight; target price raised to ₹215 from ₹200
Morgan Stanley’s preference reflects stronger earnings visibility and balance-sheet positioning among private-sector steelmakers versus PSU peers.
Investors tracking sectoral momentum alongside market direction often align exposure using Nifty Trading View.
Why Morgan Stanley Remains Constructive on Steel
| Key Driver | Brokerage View |
|---|---|
| Steel spreads | Expansion likely to continue |
| Domestic pricing | Policy uplift provides strong support |
| China anti-involution | Medium-term positive for global steel balance |
| Global macro | Supportive demand and trade environment |
According to the brokerage, domestic steel prices still have room to move higher, aided by protective policy measures and improving demand-supply balance within India.
|
Sector Positives
🔹 Policy-driven support to domestic prices 🔹 Expanding steel spreads 🔹 China supply discipline theme |
Relative Risks
🔻 PSU exposure less preferred 🔻 Global volatility could impact sentiment 🔻 Input cost swings remain a monitorable |
Brokerage View Summary
Morgan Stanley believes steel stocks can continue to deliver stellar returns, supported by structural pricing power, favourable policy backdrop, and a supportive global macro environment. The brokerage’s preference clearly tilts toward private-sector players with stronger balance sheets and execution visibility.
Broader market alignment can be tracked using BankNifty Trading View.
Investor Takeaway
Derivative Pro & Nifty Expert Gulshan Khera, CFP®, believes the latest Morgan Stanley upgrades underline a continued bull phase for Indian steel, driven by domestic price strength and improving global supply discipline. While stock selection remains crucial, the sector’s structural tailwinds continue to favour medium-term positioning. More informed market insights are available at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Indian Steel Stocks
Why did Morgan Stanley upgrade JSPL?
Is the steel rally likely to continue?
How do policy measures impact steel prices?
Why are private steel players preferred over PSUs?
What role does China play in global steel pricing?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
