Steel stocks gain; Jindal Steel & Power hits 52-week high
Shares of steel companies are trading higher by up to 10% on the BSE in intra-day trade on Monday on hopes of higher production in financial year 2017-18, backed by an expected revival in consumption.
Jindal Steel & Power (JSPL), Tata Steel, Jindal Saw, Bhushan Steel, Maharashtra Seamless, Uttam Galva, Prakash Industries and Steel Authority of India (SAIL) were up 2% to 10% on the BSE.
JSPL hit a 52-week high of Rs 102, up 10% in intra-day trade on back of nearly two-fold jump in trading volumes. A combined 35.28 million shares have changed hands on the BSE and NSE till 11:40 am.
According to Care Rating, in the coming financial year 2017-18, steel production is expected to remain higher. This will be backed by an expected revival in consumption.
“An increase in infrastructure allocation by the government in the Union Budget 2017-18 is expected to drive the pace of construction and infrastructure in the country. Apart from this, the National Steel Policy 2017 released by the government also aims to increase steel production. Thus, both production and consumption of steel is expected to remain buoyant in 2017-18," Care Rating said in recent report.
In the December 2016 quarter, the industry reported a significant improvement on the sales and profits front on account of improved prices and production. On a year-on-year basis, industry’s sales increased by 36% and it reported notable reduction in net losses during the quarter ended December 2016. The industry’s results are based on the financial results of 56 listed steel companies.
COMPANY LATEST PREV CLOSE GAIN(%) JINDAL STEEL 100.60 92.95 8.23 JINDAL SAW 70.40 66.25 6.26 MAH. SEAMLESS 309.75 292.45 5.92 BHUSHAN STEEL 57.55 54.35 5.89 UTTAM GALVA 31.55 30.40 3.78 S A I L 61.70 59.90 3.01 TATA STEEL 479.85 467.95 2.54 GOODLUCK INDIA 87.10 85.15 2.29 WELSPUN CORP 83.95 82.15 2.19 WELSPUN CORP 83.90 82.15 2.13