Tata Steel, JSPL among Macquarie's top picks among steel stocks aided by strong domestic demand, prices

Among specific stocks, Macquarie retained its "outperform" rating on Tata Steel shares, but raised the price target to Rs 151 apiece from Rs 120 earlier. The revised price target implies a potential upside of over 20 percent from Thursday's closing levels for Tata Steel over the next 12 months.

Out of the 31 analysts that track Tata Steel, 24 have a "buy" recommendation, while five have a "hold" rating. Two analysts have a "sell" call.

Macquarie also upgraded Jindal Steel and Power Ltd. (JSPL) to "outperform" from "neutral" earlier, and also raised its price target sharply higher to Rs 808 from Rs 557 earlier. The revised price target implies a potential upside of 19 percent from current levels.

18 out of the 22 analysts that track JSPL have a "buy" rating on the stock, while four analysts each have a "hold" and "sell" recommendation.

JSW Steel Ltd. has also been upgraded by Macquarie to "neutral" from "underperform" earlier, with an upgraded price target of Rs 841 from Rs 641 earlier.

Nine analysts each tracking JSW Steel have a "buy" and "hold" rating on the stock respectively, while 13 of them have a sell call.

Shares of Tata Steel, JSW Steel and JSPL are trading with gains ranging between 0.5 percent to 1.5 percent on Friday.