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Stocks of major steel companies are seen marginally up next week with analysts largely positive on JSW Steel Ltd and Steel Authority of India Ltd. This week, the metal index outperformed the broader market, gaining around 1.8% while the benchmark indices gained around 1%. From Oct 1, Indian Railways has started levying a Busy Season Charge of 15% for ferrying all commodities. JSW Steel has raised prices of its flat products on this hike, and other steel players are also expected to undertake similar hikes. In spite of a few analysts saying that JSW Steel stock was in 'overbought territory', the stock has seen a 5.6% rise since Sep 27. Many analysts are still slightly positive on the stock. JSW Steel raised prices of its flat products by 1.5-2% effective Oct 1. The company also announced that it will set up a second steel processing unit at Pune. The announcements helped JSW Steel continue its dramatic rise. We are slightly positive on Steel Authority of India. The company reported saleable steel numbers of 5.7 mln tn in Apr-Sep, up 8% year-on-year. Tata Steel Ltd and Jindal Steel and Power Ltd are seen trading in narrow range due to lack of any major triggers.
Stocks of major steel companies are seen marginally up next week with analysts largely positive on JSW Steel Ltd and Steel Authority of India Ltd. This week, the metal index outperformed the broader market, gaining around 1.8% while the benchmark indices gained around 1%. From Oct 1, Indian Railways has started levying a Busy Season Charge of 15% for ferrying all commodities. JSW Steel has raised prices of its flat products on this hike, and other steel players are also expected to undertake similar hikes. In spite of a few analysts saying that JSW Steel stock was in 'overbought territory', the stock has seen a 5.6% rise since Sep 27. Many analysts are still slightly positive on the stock. JSW Steel raised prices of its flat products by 1.5-2% effective Oct 1. The company also announced that it will set up a second steel processing unit at Pune. The announcements helped JSW Steel continue its dramatic rise. We are slightly positive on Steel Authority of India. The company reported saleable steel numbers of 5.7 mln tn in Apr-Sep, up 8% year-on-year. Tata Steel Ltd and Jindal Steel and Power Ltd are seen trading in narrow range due to lack of any major triggers.
