MARKET EYE-Morgan Stanley, Citi positive on India's Tata Steel

Wed Jan 30, 2013 12:09pm IST

Related Topics

Stocks

   

* Citigroup says oversupply in China and Europe leaves little
room for upside in steel prices, after global re-stocking
sparked a rally over the past three months.
* However, the bank retains a 'buy' rating on Tata Steel Ltd
 and raises its target price to 508 rupees from 430
rupees, citing "inexpensive" valuations, a bottoming out of
earnings in Tata Steel Europe and more resilient volumes than
other Indian steel makers.
* Separately, Morgan Stanley adds Tata Steel to its Asia-Pacific
excluding Japan as well as Emerging Markets focus lists, saying
the company offers "a good restructuring story" due to rising
capacity, improved sales volumes and the commissioning of a new
coke oven battery. 
* Citigroup also downgrades Steel Authority of India Ltd
 to 'sell' from 'neutral' after the stock gained over
12 percent in past three months, already discounting
expectations of margin improvement in fiscal 2014.
* Tata Steel shares gain 1.2 percent, while SAIL shares are up
0.4 percent.

 (manoj.dharra@thomsonreuters.com/abhishek.vishnoi.thomsonreuter
s.com@reuters.net)
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Coal Block Allocation

Coal Block Allocation

Government urges Supreme Court to not cancel some 'illegal' coal mines  Full Article 

Modi in Japan

Modi in Japan

Japan and India agree to boost strategic ties at summit  Full Article 

Basel III Norms

Basel III Norms

RBI amends Basel III guidelines for banks  Full Article 

HSBC PMI

HSBC PMI

Factory activity expands at slower clip in August.  Full Article 

Current Account

Current Account

Balance of payments surplus for third straight quarter  Full Article 

India Infrastructure

India Infrastructure

RBI rule handicaps India's infrastructure hopes  Full Article 

Book Talk

Book Talk

Reema Abbasi and a glimpse of Pakistan’s Hindu past  Full Article 

China Economy

China Economy

Retreat in China's PMIs heightens calls for policy easing.  Full Article 

Managing Share Sales

Managing Share Sales

Govt seeks bids from banks to manage PFC, REC share sales   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage