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)
Trending On Reuters
India GDP Data
India's economy grew faster than China's in the quarter through March, data showed on Friday, but a sharp downward revision for the previous quarter fuelled doubts about the accuracy of a new method used to measure economic activity. Read | Graphic