National Steel Policy Draft Pulls Nifty Metal, Steel Stocks In Green

Steel stocks traded in the green in early trade on October 12, 2026, driven by strong market sentiment. The positive movement was led by heavyweights such as Tata Steel, JSW Steel, SAIL, Jindal Stainless, and NMDC, which pulled the Nifty Metal index into the green. The Nifty Metal index rose by 1.20 per cent to 12,145.2 during early trade in the day.

Why Are Steel Stocks Gaining

The upward momentum in steel stocks is likely to have been driven by the release of the draft National Steel Policy: Vision 2047 by the Ministry of Steel on October 11, 2026. The policy outlines a roadmap for the sector, aiming to reach a crude steel capacity of 604 million tonnes by 2047.

The draft also projects finished steel demand to reach 505 million tonnes, and targets an increase in per capita steel consumption to 302 kg. The document provides multi decade visibility for steelmakers, miners, and specialty steel manufacturers, which in turn is likely to have changed investor sentiment around steel stocks.

Shares of SAIL reached an intra-day high of Rs 177.25 apiece after gaining over 3 per cent on the NSE. As a major central public sector undertaking (PSU), SAIL can potentially benefit from the capacity expansion mandates outlined in the policy to meet the country’s growing steel requirements. According to a statement issued by the Ministry of Steel in Rajya Sabha detailing the company’s capacity expansion, SAIL  plans to raise its crude steel production capacity to 35 million tonnes per annum by financial year 2030 to 2031 through a proposed indicative investment of around Rs 1,10,000 crore.

JSW Steel shares gained 1.59 per cent to reach an early high of Rs 1,186.6 on the NSE. The stock is likely to have gained because the policy mandates capacity additions over the next two decades to meet the 604 million tonnes capacity and 505 million tonnes finished steel demand targets. The company itself has also announced a capacity ramp-up. According to the company’s Integrated Report 2024-2025, JSW Steel has also announced a roadmap to achieve a domestic steel capacity of 50 million tonnes per annum by financial year 2030 to 2031, supported by an approved capital expenditure plan of Rs 61,863 crore over the next three years.

Tata Steel shares gained nearly 2 per cent to touch an intra-day high of Rs 177.25 per share on the NSE. Tata Steel is likely to benefit from the push for infrastructure-led growth, which is expected to remain a key driver of steel demand. The company is positioned to capture this demand as it has set an objective to reach a proposed steel capacity of 35-40 million tonnes per annum in India by 2030, according to its Integrated Report and Annual Accounts 2023 to 2024.  

NMDC shares gained 0.61 per cent to hit an early high of Rs 72.24 on the NSE. The Ministry of Steel has stated in the draft that iron ore demand is projected to reach 772 million tonnes by 2047 to support the expanded steel production. As the largest state-owned iron ore producer, NMDC can potentially meet this raw material requirement as the goal aligns with its own aggressive production roadmap, as stated in recent management commentary, wherein the company’s managing director, Amitava Mukherjee, said that it is targeting 100 million tonnes of iron ore production by 2030.  

Jindal Stainless rose 1.26 per cent to trade at an early high of Rs 718 apiece on the NSE. According to the draft of the policy, India’s per capita stainless steel consumption is around 3.40 kg compared to a global average of over 6 kg, indicating significant growth potential. The market leader stands to gain immensely from the push for value added and stainless steel indigenisation. As stated by managing director Abhyuday Jindal in the company’s financial year 2025-2026 annual report, the company recently announced a Rs 900 crore investment to expand its cold rolling capacity to 2.67 million tonnes per annum by financial year 2028 to support a higher value mix for industrial applications. 

At the time of writing, shares of JSW Steel were trading at Rs 1,185.70 apiece, up by 1.52 per cent on the NSE. Tata Steel was trading at Rs 176.60 apiece, up by 1.61 per cent on the NSE, while shares of NMDC were trading at Rs 71.83 apiece, up by 0.43 per cent on the NSE, while shares of Jindal Stainless were trading at Rs 716.60 apiece, up by 1.06 per cent on the NSE.  At the time of writing, shares of SAIL were trading at Rs 175.60 apiece, up by 2.36 per cent on the NSE.