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Tata Steel, JSW Steel, Hindalco among top Nifty losers on profit-booking, weak outlook 

Tata Steel, JSW Steel, Hindalco among top Nifty losers on profit-booking, weak outlook 

Tata Steel stock touched an intraday low of Rs 101.6, down 2.5 per cent on BSE. On Nifty too, Tata Steel was the top loser falling up to 2.62 percent to Rs 101.45 against previous close of Rs 104.20.

The BSE metal index was the top gainer in the previous session, closing 565 points higher at 19,264. However, the index saw profit-booking and was the top loser today, slipping 286 points to 18,978 in early trade. The BSE metal index was the top gainer in the previous session, closing 565 points higher at 19,264. However, the index saw profit-booking and was the top loser today, slipping 286 points to 18,978 in early trade.

Shares of Tata Steel were the top Sensex losers amid a rally in the broader market today. Tata Steel stock was the top Sensex gainer yesterday, rising 3.02 per cent to Rs 104.20. The BSE metal index was the top gainer in the previous session, closing 565 points higher at 19,264. However, the index saw profit-booking and was the top loser today, slipping 286 points to 18,978 in early trade. 

Tata Steel stock touched an intraday low of Rs 101.6, down 2.5 per cent on BSE.  The share  trades higher than 5 day, 20 day and 100 day moving averages but lower than 50 day and 200 day moving averages.  The stock has lost 21.72 per cent in a year and fallen 8.5 per cent in 2022. 

In a month, the stock has gained 6.77 per cent. Total 25.38 lakh shares of the firm changed amounting to turnover of Rs 25.94 crore on BSE.  Market cap of Tata Steel fell to Rs 1.23 lakh crore. 

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On Nifty too, Tata Steel was the top loser falling up to 2.62 percent to Rs 101.45 against previous close of Rs 104.20. Jindal Steel and JSW Steel were the other losers, falling 2.92 per cent and 2 per cent, respectively. Shares of Hindalco too lost 2.49 percent to Rs 402.05 on BSE. The stock has fallen after three days of gain. On Nifty, Hindalco stock lost 2.66 per cent to Rs 401.40 against the previious close of Rs 412.40.  

Steel stocks are likely to remain under pressure due to the global slowdown and delays in infrastructure activities such as road and highway construction , which may put additional pressure on steel prices in the coming quarters.

HRC (Hot rolled coil) prices in India rose to Rs 78,800 in April 2022 before falling after the government imposed an export duty on steel products in late May 2022. HRC prices have fallen nearly 40% in the last six months as a result of oversupply and weak demand caused by the monsoon season.

On the outlook of Indian steel companies, Siddharth Oberoi, founder, Prudent Equity said, "The Indian steel producers have seen a fall in earnings due to decreased realisation, rising input costs, and low production and demand in the market. Companies that rely on export markets were hit hard by falling steel prices around the world. JSW Steel, one of India's largest steel producers, said in its latest earnings release that  the export duty imposed in May 2022 has reduced the company's exports by 62% year-on-year and 37% quarter-on-quarter. " 

"The realization of the company also fell by over 16% on a sequential basis due to a decrease in global prices. In the coming quarters, most of the other players in the industry are expected to post a steep decrease in earnings as well," added Oberoi. 

Published on: Oct 28, 2022, 12:37 PM IST
Posted by: Aseem Thapliyal, Oct 28, 2022, 12:30 PM IST