Global brokerage Macquarie has issued an optimistic outlook on India's metal sector, citing strong domestic fundamentals and easing input costs as key drivers for growth.

What Happened: The brokerage upgraded JSW Steel to “outperform” and raised target prices for Coal India, Jindal Steel & Power, Hindalco and Tata Steel.

JSW Steel, which was upgraded to “outperform”, saw its target price increased to ₹1,077 from ₹884, offering over 13% upside from its previous close. 

Hindalco also received a target price boost, with Macquarie raising it to ₹760 from ₹597, highlighting its strength in aluminium and robust demand in downstream packaging. The new target price for Hindalco suggests an 11% upside.

Macquarie retained its “outperform” rating on Coal India, lifting its target price to ₹541 from ₹465, driven by the company’s focus on cost control, volume growth, and a 5% dividend yield.

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Jindal Steel & Power's target price was revised upward to ₹1,170 from ₹1,070, while Tata Steel’s target price increased to ₹171 from ₹162.

Macquarie said steel companies are well-positioned to benefit from domestic price premiums and steady leverage, along with reduced input costs. The brokerage also noted that commodity prices could face upside risks in the next six to 12 months, potentially benefitting these firms further.

Price Action: JSW Steel’s share price was up 2.94% at ₹976.25 in early trade on Friday. Coal India’s share price gained 1.58% to trade at ₹485.50, while Jindal Steel climbed 0.47% to ₹1,007.50.

Hindalco shares went up 1.83% to ₹696.75 and Tata Steel jumped 1.42% to ₹151.67 in early trade.

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