India's outperforming steel stocks could slide 17-38%, says Morgan Stanley
** Indian metal stocks' .NIFTYMET jump of 23% YTD is nearly double the bluechip Nifty 50's .NSEI
** But Morgan Stanley says the outperformance is overdone
** "With no material improvement in inventory levels, spreads and hence profitability, steel stocks could de-rate over the coming months"
** MS PTs imply 17%-38% slide over next 12 months for Tata Steel TISC.NS, SAIL SAIL.NS, JSW Steel JSTL.NS and Jindal Steel & Power JNSP.NS
** MS expects domestic supply to exceed demand on sluggish post-elections demand and amid monsoons
** Expects monsoon-led demand slowdown to moderate hot-rolled coil (HRC) steel and rebar prices
** Metals index down 1.1% on the day, with 11 of 15 constituents in the red
Morgan Stanley's coverage universe of Indian steel companies https://reut.rs/4cIdqJQ
Reporting by Bharath Rajeswaran in Bengaluru
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