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Steel stocks are seen down next week as investors are apprehensive of a poor earnings season, and will eye September production data of the companies in the coming days. This week, the metal index outperformed the broader market as it fell only around 1% while the benchmark indices fell around 2.5%. The Nifty shed 3.07% to close at 5833.2 today, while the BSE Sensex ended down 2.72% at 19727.27. The CNX Meta Index ended down 0.94% at 2122.35. Delay in resumption of the company's category A and B mines, and the lack of material improvement in the US plate and pipe mill operations will be negative triggers for the company. The management (of JSW Steel) indicated that there is positive news flow in respect of opening up of a few category B mines, but it may not result in higher capacity utilisation as the company primarily looks to replace the sourcing of iron ore from outside Karnataka with iron ore from the state itself. JSW Steel is currently in "overbought territory" and so will see corrections next week.
Steel stocks are seen down next week as investors are apprehensive of a poor earnings season, and will eye September production data of the companies in the coming days. This week, the metal index outperformed the broader market as it fell only around 1% while the benchmark indices fell around 2.5%. The Nifty shed 3.07% to close at 5833.2 today, while the BSE Sensex ended down 2.72% at 19727.27. The CNX Meta Index ended down 0.94% at 2122.35. Delay in resumption of the company's category A and B mines, and the lack of material improvement in the US plate and pipe mill operations will be negative triggers for the company. The management (of JSW Steel) indicated that there is positive news flow in respect of opening up of a few category B mines, but it may not result in higher capacity utilisation as the company primarily looks to replace the sourcing of iron ore from outside Karnataka with iron ore from the state itself. JSW Steel is currently in "overbought territory" and so will see corrections next week.
