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

Wed Jan 30, 2013 12:09pm IST

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A statue of the Ganesh, the deity of prosperity, is carried in a taxi to a place of worship on the first day of the ten-day-long Ganesh Chaturthi festival in Mumbai August 29, 2014. REUTERS/Danish Siddiqui

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During Ganesh Chaturthi idols will be taken through the streets in a procession accompanied by dancing and singing, and will be immersed in a river or the sea in accordance with Hindu faith.  Slideshow 

* 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)
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