SAIL falls; government seen selling stake at discount

Wed Feb 6, 2013 3:14pm IST

Related Topics

Stocks

   

Reuters Market Eye - Shares in Steel Authority of India Ltd (SAIL.NS) fall 3.9 percent on worries the government's planned stake sale will have to happen at a discount to attract interest as there are concerns about the company's earnings outlook.

Citigroup last week downgraded SAIL to "sell", noting downside risks to volumes, uncertainty on wages and its dependence on the domestic market, where steel prices may not rise as much as in global markets.

The government is planning to sell a stake in SAIL and other state-run companies including NTPC Ltd (NTPC.NS) in February and March.

Dealers also speculate SAIL could post lower-than-expected margins in the October-December quarter.

(Reporting by Abhishek Vishnoi)

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

Election 2014

Election 2014

Promises and more promises: India’s parties pitch their visions.  Full Article | Full Coverage 

India Markets

India Markets

Sensex slumps 207 points, at 2-1/2 week closing low.  Full Article 

Telecom Sector

Telecom Sector

RComm to raise mobile call tariff by up to 20 percent  Full Article 

Chinese Economy

Chinese Economy

China economic growth slows to 18-month low in first quarter  Full Article 

New Direction

New Direction

CEO Nadella pushes data culture at Microsoft.  Full Article 

Bitcoin ATM

Bitcoin ATM

China gets first bitcoin ATM, skirting bank crackdown.  Full Article 

Strong Sales Volume

Strong Sales Volume

Small is beautiful for Coca-Cola as volumes soar in China  Full Article 

Breakingviews

Breakingviews

Diageo throws money at Indian empire-building  Full Article 

Toyota's Performance

Toyota's Performance

After two bumper years, Toyota braces for shift to slower growth.  Full Article 

Reuters India Mobile

Reuters India Mobile

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