As the Indian markets bounced back from the major dip in the early half of the trading session on Friday, December 13. The fortunes of steel stocks, especially SAIL, or Steel Authority of India, did not turn on their heads as the day progressed.
SAIL Gets 'Underweight' Rating
The company shares were trading with significant cuts on the last trading day of this week.
The public sector steel company's decline at Dalal Street came to pass after the company stocks were put in the underweight rating. The stock therefore is expected to underperform.
The American brokerage firm also issued a price cut with a target of Rs 115. This is below its 52-week-high of Rs 175.35 per share.
Why Is It Happening?
This also comes at a time, when other major steel stocks, including Tata Steel and JSW Steel despite positive ratings were trading with deep cuts.
This slump is being attributed to the development across the board in the steel industry. The Chinese economic crisis low domestic demand and high rate of export from China to other territories added to the woes of the steel industry.
SAIL Shares In Red
The shares of these steel companies have been trading in the red territory in the past few trading weeks owing to this reason.
When we take a deeper look at the shares of Steel Authority of India, the company stocks saw their value dip by over 5 per cent in the early hours of the day's trade.
This dipped to 4 per cent, as the trading session progressed further. At the time of writing, the decline shrunk further, at 13:13 IST the shares of the company dipped 3.87 per cent or Rs 5.00.
This took the overall value of the company shares to Rs 124.26 per piece. It needs to be noted, that the company shares have a relatively stable trading period in the recent past, with gains of 0.44 in the recent 5 trading sessions.
