Steel industry of India is a vast ocean of steel companies ranging from multinational enterprises to small businesses. High performing steel companies are listed on the stock exchanges of India, making them popular in terms of steel industry and stock market.
Indian steel industry’s stock market contains companies belonging to the iron and steel sector listed on either Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). When people discuss the steel industry and stock market, they are talking about how the stocks of the listed steel companies are performing.
The steel company with the highest market capitalisation ranks first in the stock market for the iron and steel sector, as is the general practice in the stock market. Let us have a look at the NSE stock market rankings of the Indian steel sector at the time of writing:
|Rank||Company||Market capitalisation (₹ Crore)|
Looking at the market capitalisation figures you can see that JSW Steel is the steel enterprise with the highest market capitalisation. This means this firm is worth more than any other company in India so is its size.
Trading steel stocks
Like every other stock listed on the stock market, steel stocks are traded on both BSE and NSE as per the current value of the stock as published on the stock exchange. For example, at the time of writing, Tata Steel is trading at ₹129.45/share. You have ten Tata Steel stocks that you are planning to sell. The total money you are liable to receive is ₹1290.45. If you want to buy ten stocks of Tata Steel, then you must pay ₹1290.45.
What is happening in the steel industry stock market now?
At the time of writing (September 20, 2023), the major news story from the Indian steel industry is a joint investment agreement between Tata Steel and UK. Tata Steel has agreed to invest in state-of-the-art Electric Arc Furnace steelmaking at the Port Talbot site with a capital cost of £1.25 Billion. The UK government has agreed to give £500 million as grant money to help set up the facility to reduce pollution in the island nation.
Following this announcement, the Tata Steel stocks touched a new 52-week high during Monday’s trading session. Stock market analysts believe that this is a favorable news for Tata Steel stocks as this move would reduce the company’s losses in Europe.
According to Global Data, a research and analysis company, the value of steel industry in India was traced at ₹75,850.17 Million in 2021. With approximate production 120 MT steel per annum, India is the world’s second largest producer of crude steel after China. A significant portion of this steel production comes from the top performing companies of the stock market.