Shares of metal companies were under pressure at the bourses in an otherwise strong market, with the S&P BSE Metal and Nifty Metal indices slipped over 2% in intra-day trade today. The metal index slipped after media reports said that the global brokerage house Credit Suisse downgraded steel stocks.
The brokerage firm said the expectation of elevated domestic iron ore prices would hurt spreads for steel companies, following this all steel companies are in red.
As per media reports, Credit Suisse has downgraded Tata Steel and Jindal Steel and Power to ‘neutral’ from ‘outperform’ rating with a price target of Rs1,250 and Rs450, respectively. The global brokerage has also reduced the rating for JSW Steel to ‘underperform’ from ‘neutral’ and slashed the target price to Rs550 apiece. However, it has maintained its ‘neutral’ stance on the Steel Authority of India (SAIL), the media reports added.
Reacting to this news, shares of Jindal Steel (JSPL) tumbled 3.79%, SAIL dropped 3.39%, Hindalco slumped 2.25%, JSW Steel and Tata Steel down by 2%, followed by NMDC, Hindustan Zinc, APL Apollo and NALCO were down in the range of 1.5%-1%, respectively.
However, Ratanmani is the only stock is trading in the positive territory on the metal index.
The Nifty Metal index was trading at 5,018.40, down 1.59%, touching a high of 5,070.70 and a low of 4,987.25 during intraday trade on Wednesday.
Meanwhile, equity market indices are bullish with the BSE Sensex is currently 51,020.84, up 383 points or 0.76% and the Nifty50 is currently 15,308, up 99.70 points or 0.66%.
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( With inputs from indiainfoline)