Equity Alert: Steel shares down despite export duty rollback report

[K.Karthik Raja]

Equity Alert: Steel shares down despite export duty rollback report

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Equity Alert: Steel shares down despite export duty rollback report
MUMBAI--1:30PM--Most steel shares were down in line with the broad
market, dealers said, despite a CNBC-TV18 report a rollback of export
duty on
flat steel products is likely this week.
Although JSW Steel shares did move off lows on the news, weakness
in the
broad market pulled down shares of the company again, dealers said.
Tata Steel was down 1.5%, while JSW Steel and Steel Authority of
India
were down 1% and 0.2%, respectively.
Supports for Tata Steel and JSW Steel are seen at 850 rupees and
1,123
rupees, respectively, while SAIL can climb to 158 rupees, said a
technical
analyst.
"JSW Steel would be the main beneficiary since it is the main
player in
exports. SAIL has only 3-4% exposure to exports," said Giriraj Daga,
analyst,
Khandwala Securities.
Daga recommends accumulating SAIL shares as they are fairly valued
at
current levels.
SAIL is relatively immune to a hike in iron ore prices as it is
backward
Integrated, although most other companies' margins are likely to
remain under
pressure due to rising input costs, he said.