Metal stocks were the top sectoral losers today after the government raised export duty on steel products. On May 21, duty on iron ore was raised by up to 50 percent and some steel intermediaries to 15 percent to facilitate domestic availability.
Tata Steel was the top Sensex loser, falling up to 14.28 per cent to Rs 1,003, a fresh 52-week low, on BSE. The stock opened with a loss of 5.14 percent at Rs 1,110 today. A total of 12.20 lakh shares of the firm changed hands, amounting to a turnover of Rs 125.83 crore.
The market cap of the firm fell to Rs 1.25 lakh crore on the BSE. Tata Steel stock is trading lower than 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. The large-cap stock has lost 7.62 per cent in one year and fallen 7.54 percent since the beginning of this year. In a month, the stock is down 19.57 percent.
The stock of another steel major JSW Steel hit a fresh 52-week low today. JSW Steel stock fell up to 13.33 per cent to Rs 546.75 on BSE. Earlier, it opened 4.48 per cent lower at Rs 602 against the previous close of Rs 630.85. JSW Steel stock is trading lower than 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.
Jindal Steel and Power slipped up to 18 percent in the afternoon session today. The stock opened with a loss of 7.01 percent at Rs 445.35 on BSE. It slipped to an intraday low of Rs 393.05 today. Jindal Steel stock is trading lower than 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
Shares of Steel Authority of India too slipped 13.01 per cent to hit a 52-week low of Rs 72.2 today. SAIL stock opened with a loss of 5.6% at Rs 78.35 on BSE. SAIL stock is trading lower than 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
NMDC shares touched an intra-day low of Rs 128, down 12.54 per cent on BSE. The stock opened with a loss of 6.39 percent at Rs 137 today.
Stock of another steel manufacturer Vedanta slipped 6.87 per cent to Rs 292.8, against the previous close of Rs 314.40 on BSE.
ICICI Securities said in a note to investors, "We see this as an extremely negative development for the steel sector and expect broad-based multiple de-rating. We downgrade steel/stainless equities under our coverage to either hold/reduce/sell".
The BSE metal index crashed by nearly 8 per cent, its biggest fall in two years. The index was trading at 17,708, down 8.05 percent from the previous close of 19,259.
"While there is an inclination (that we can see from our discourse with investors) to club this decline with the expected decline in EBITDA/te caused by cyclical factors, the same should be clearly demarcated", ICICI Securities report said.
The brokerage house lowered the rating of Tata Steel, JSPL, JSW Steel, SAIL to "reduce". It also downgraded SMEL and Jindal Stainless to "hold" from "buy".
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today