By Malvika Gurung
Investing.com -- Global brokerage firm Jefferies (NYSE: JEF ) has grown positive on Indian metal stocks after turning cautious on the country’s steel sector in January last year.
According to Jefferies, the worst-margin quarter for Indian steel and a ‘big chunk’ of earnings cuts for Tata Steel and Hindalco are left behind.
This, in conjunction with China beginning to ease its Covid-19 restrictions and support the ailing property sector in order to stabilise its economy, is likely to drive a recovery in metal demand in 2023, stated Jefferies.
"If the US Fed rate hikes slow as CPI decelerates, and if China continues to relax Covid restrictions, then the cyclical bottom in metals might be close, if not behind," the global research firm added.
China is the largest consumer of metals in the world and a significant market for Indian metal companies.
As a result, metal stocks are on a rise on Monday. Tata Steel and Hindalco are top gainers on Nifty50 , surging over 4% in the session.
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