Globally, steel prices have been on an upward trajectory due to input cost pressure. However to curb inflation, the government has been trying to rein in the soaring steel prices by adopting several measures like imposition of export tax. Clearly, if the government does impose an export tax of 10% on finished steel, profitability of steel players will be negatively impacted, especially that of JSW Steel, which has a higher export revenues share in total revenues. In case of JSW Steel, 30% of its revenues can be attributed to exports, while export revenues of SAIL and Tata Steel account for 3.5% and 10% of their total revenues, respectively. We maintain our Neutral view on both SAIL and Tata Steel and Buy on JSW Steel. Read More

Click Here to read the complete steel sector update by Angel Broking and to to view Angel broking steel sector top stock picks, target price and stock recommendations.

For more stock tips, share market information, demat account opening and online share trading help in Mumbai and India Log on to www.angeltrade.com (top retail broking house in India and Mumbai) or kindly contact sales@angeltrade.com / 022 – 40003630