Jefferies upgrades Tata Steel, Hindalco

Mumbai: Brokerage Jefferies upgraded ratings on Tata Steel and Hindalco to 'buy' on the grounds that the worst may be nearing an end. Both the stocks have the potential to give 23-25% returns, the firm said in a client note.

The Nifty Metal index hit a new all-time high of 6,907 on Monday. The index closed at 6,886, up 163.25 points or 2.43% from the previous close. Tata Steel advanced nearly 6% on the NSE to post its single-biggest jump in a week. The stock closed at ₹119.1. In the past three trading sessions, Tata Steel's stock futures have seen a near 20% jump in open interest indicating build-up of fresh bullish bets.

Jefferies expects Tata Steel to hit ₹150 (from ₹95 earlier) and sees Hindalco testing ₹600 (from ₹390) this year.