BNP Paribas downgrades JSW Steel on valuations, no rupee benefits
Reuters Market Eye - BNP Paribas downgrades JSW Steel Ltd(JSTL.NS) to "reduce" from "hold", citing expensive valuations after recent outperformance due to a delay in the U.S. Federal Reserve's tapering of monetary stimulus in September.
The investment bank says its checks with steel producers and traders suggest that the benefits of a weak currency are neutralised when the rupee is around 60-62 to the dollar.
"With the INR hovering at these levels, a sharp recovery in imports is unlikely and the export opportunity no longer looks as attractive," BNP Paribas said in a report.
BNP Paribas maintains its "hold" on Tata Steel Ltd (TISC.NS) and Steel Authority of India Ltd (SAIL.NS).
JSW Steel falls nearly 1 percent, while Tata Steel is up 1.34 percent and SAIL is down 0.38 percent at 1102 am.
(Reporting by Abhishek Vishnoi)
- Tweet this
- Share this
- Digg this
Trending On Reuters
Monetary Policy Committee
Having agreed this week to formally adopt inflation targeting as a guiding star for monetary policy, India's government and central bank remain at odds over how crucial decisions are made. Full Article
PM Modi to ramp up help for Indian Ocean nations to counter China influence Full Article