February 3, 2014 / 10:23 AM / 4 years ago

Steelmakers fall on weak China factory PMI

Reuters Market Eye - India’s steelmakers fall on weak China’s factory Purchasing Managers’ Index (PMI) numbers, which edged down to 50.5 in January from December’s 51, the National Bureau of Statistics said on Saturday.

A labourer works inside a steel factory on the outskirts of Jammu January 2, 2014. REUTERS/Mukesh Gupta/Files

Shares of JSW Steel (JSTL.NS) down 6.6 percent, Tata Steel (TISC.NS) falls 3.7 percent, Jindal Steel down (JNSP.NS) 2.7 percent and Steel Authority of India (SAIL.NS) down 2.6 percent.

“Steel stocks are facing strong headwinds from increasingly poor Chinese data that is making market participants question the demand outlook for metal stocks. Since these stocks had rallied between 30 to 80 percent in the last 6 months, there is a rush to book profits,” said Varun Khandelwal, fund manager, Bullero Capital Pvt Ltd.

However, traders feel the fall would be limited from hereon on value buying.

Reporting by Dipika Lalwani

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