New Delhi, Jan. 2 -- ICICI Securities has upgraded its outlook on India's steel sector after the government imposed a three-year safeguard duty on most flat steel imports, a move expected to significantly improve domestic pricing power and profitability.

In its latest sector update, the brokerage firm said it has raised the Financial Year 2027 and Financial Year 2028 Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) estimates for steelmakers by 3-10%, citing expectations of higher-for-longer domestic steel prices following the safeguard duty. The duty, levied at 12% in the first year, will taper marginally over the next two years.

Domestic hot-rolled coil (HRC) prices have already climbed 6% since early December, ...