ICICI Securities bolsters its recommendations, upgrading Tata Steel and JSW Steel to ‘Buy’, as it releases its top picks in the metal sector.

ICICI Securities has upgraded Tata Steel and JSW Steel to a “Buy” rating, citing improvement in the profitability and cash flow of the steel industry. The brokerage firm has also kept its overweight call on the metal sector, citing factors such as demand revival, production cuts, and consolidation in the industry. ICICI Securities expects the sector to continue its upward momentum, driven by increased demand, cost control measures, and improving corporate profitability. The top picks in the sector, according to ICICI Securities, are Tata Steel, JSW Steel, and Hindalco Industries. The firm has also listed top avoided stocks as Steel Authority of India (SAIL) and Nippon Denro Opco (formerly known as NMDC). Overall, ICICI Securities is optimistic about the metal sector’s prospects, citing expectations of a metal price uptick, reduction in inventory levels, and improvement in realizations.