Equity Alert: Steel shares up 2-10% on govt export duty exemption

[K.Karthik Raja]

Equity Alert: Steel shares up 2-10% on govt export duty exemption

Equity Alert: Steel shares up 2-10% on govt export duty exemption
MUMBAI--11:18AM--Steel shares were up 2-10%, as the government
Friday exempted flat steel products from the 15% export duty that was
notified last month.
JSW Steel and Uttam Galva Steels gained 6% and 4%, respectively.
Jindal Saw surged 10%, while Steel Authority of India Ltd. and Bhushan
Steel rose around 2% each.
JSW Steel can rise up to 1,020 rupees if it sustains above 1,005
rupees. Beyond that it can go up to 1,056 rupees. Jindal Saw has
resistance at 590 rupees, then at 603 rupees. Uttam Galva has
resistance at 42 rupees
Jindal Saw and Welspun-Gujarat (Stahl-Rohren) would benefit the
most as they are into making pipes and are major exporters. Then would
be Uttam Galva and JSW steel as they get over 50% and around 30% of
their revenues from exports.
Steel companies will also be able to protect their margins after
the
government imposed 15% ad valorem export duty on iron ore, analysts
said. "Non-integrated players like Ispat Industries and companies that
are into sponge iron like Monnet Ispat will benefit from the iron ore
duty.
He said SAIL could rise more on value buying, while Jindal Saw may
see a 10% upside in a week if market conditions are favourable.
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