Jefferies remained bullish on Indian metal companies as a recent resurgence in the global manufacturing activity has been witnessed in the US and China. In a recent note, the brokerage firm said that it had constructive views on Indian metal sector, particularly copper and aluminium. This comes after the Nifty metal index surged over 1 per cent, closing at 8,894.4 on April 9.
Jefferies ratings for Tata Steel and Hindalco
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Jefferies upheld "buy" ratings on Tata Steel and Hindalco Industries stocks. The brokerage raised target price- Tata Steel's to ₹200 from ₹165, a 20 per cent upside from the closing price on April 9 and Hindalco's to ₹700 from ₹610, almost 20 per cent higher from closing price on April 9.
Jefferies ratings for JSW Steel
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The brokerage retained "hold" call on JSW Steel. The brokerage raised the target price to ₹900 from ₹800 which implies a 3 per cent upside from April 9 closing price.
What Jefferies said on metal stocks?
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Jefferies attributed the positive sentiment in metal stocks to the significant rise in manufacturing activities reported by China and the US. As these two countries are major consumers of metal, increase in manufacturing activity means a heightened demand for metal. US manufacturing sector witnessed growth for the first time in 18 months manufacturing PMI surged to 50.3 in March from 47.8 in February. China's manufacturing activity also expanded in March for the first time since September as the PMI rose to 50.8 in March from 49.1 in February.
{{/usCountry}}Jefferies attributed the positive sentiment in metal stocks to the significant rise in manufacturing activities reported by China and the US. As these two countries are major consumers of metal, increase in manufacturing activity means a heightened demand for metal. US manufacturing sector witnessed growth for the first time in 18 months manufacturing PMI surged to 50.3 in March from 47.8 in February. China's manufacturing activity also expanded in March for the first time since September as the PMI rose to 50.8 in March from 49.1 in February.
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