Steel Stocks Rally: Tata Steel, SAIL, JSW Steel and More Gain Up to 2% on Policy Boost

Shares of Tata Steel, Steel Authority of India, JSW Steel, and Jindal Steel rose about 1–2% in intraday trade. Most of these stocks are currently near their 52-week highs and have outperformed the broader BSE Sensex over the past month.

In the last one month, these steel stocks gained roughly 7% to 16%, compared with only a marginal rise in the benchmark index.

Why Steel Stocks Are Gaining?

• Government policy support and safeguard duties protecting domestic producers.
• Rising global protectionism, as countries impose trade barriers against excess supply.
• Strong long-term demand from infrastructure, construction, transport, and defence sectors.

Steel is considered a strategic industry because it supports economic growth, national infrastructure, and supply-chain security.

Recent Sector Performance and Costs

During Q3 FY26:

• Steel prices fell due to oversupply and cheaper imports.
• Coking coal costs increased, putting pressure on margins.
• Most companies limited profit decline through cost control and better product mix.
• Jindal Steel saw a sharper earnings drop due to one-time costs and weaker by-product sales.

Outlook for the Coming Quarter

A 12% safeguard duty introduced in December 2025 has helped domestic steel prices rise by about ₹3,500 per ton quarter-on-quarter.

Read More: Best 10 Equity Mutual Funds for February 2026 by 5‑Year CAGR.

Conclusion

Steel stocks are benefiting from supportive government policies, improving demand visibility, and protection from global oversupply. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.