Draft steel policy lifts metal stocks, derivatives show split
pre-market1 source ↓machine-written, see hownot a recommendation
- JINDALSTEL close
- ₹1,013
- On the day
- -0.41%
- Futures OI, short build-up
- +0.9%
- Put-call ratio
- 0.80
- Max pain
- ₹1,080
Metal stocks traded higher on 12 Oct 2026 after the government unveiled a draft steel policy targeting larger production capacity, stronger domestic consumption and higher exports by 2047. The Nifty Metal index rose 1.05% to 12,127.15. SAIL gained 2.15%, Vedanta Aluminium rose 2.10%, Hindustan Zinc advanced 1.95%, APL Apollo Tubes added 1.87% and Jindal Steel climbed 1.70% during the session. Tata Steel and JSW Steel also traded higher, rising 1.51% and 1.44%, respectively. 🏭
The proposed policy also covers green steel technology, improved transport infrastructure and measures to curb substandard steel imports. These measures could support domestic capacity utilisation and demand visibility across producers, downstream tube manufacturers and infrastructure-linked users, while the green-steel focus points to additional investment requirements across the value chain. The policy remains a draft, so its eventual targets, implementation timetable and funding framework will determine how quickly the sectoral impact translates into operating numbers.
OI Charts data showed a more selective derivatives response at the close. SAIL ended at ₹171, down 0.3%, despite its reported intraday gain, while futures open interest rose 7.8% in a short build-up. Its largest put open interest was at ₹170 and the largest call open interest at ₹180; max pain was ₹172.50 for the 27 Oct 2026 expiry. Jindal Steel closed at ₹1,012, down 0.4%, with futures open interest up 0.9% in a short build-up. The ₹1,000 put and ₹1,100 call carried the largest open interest, while max pain stood at ₹1,080. In contrast, JSW Steel closed at ₹1,173, up 0.4%, with futures open interest rising 0.8% in a long build-up. Its key open-interest levels were ₹1,180 on the put side and ₹1,260 on the call side, with max pain at ₹1,220.
The next market triggers are the policy’s final version, sector-specific implementation measures and follow-through in steel demand and export data. Traders will also watch whether SAIL holds ₹170, whether Jindal Steel sustains ₹1,000 and whether JSW Steel moves beyond the ₹1,180–₹1,260 open-interest range. The broader backdrop remains cautious: over five sessions, the three stocks were down 3.4%, 7.7% and 5.0%, respectively. ⚙️
Source: Zee Business, 12 Oct 2026
Not investment advice. For informational purposes only.