Reuters logo
BNP Paribas downgrades JSW Steel on valuations, no rupee benefits
September 26, 2013 / 5:39 AM / 4 years ago

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.

A labourer works inside a steel factory on the outskirts of Jammu June 12, 2012. REUTERS/Mukesh Gupta/Files

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

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below