Credit Suisse cut its steel prices estimates after bigger-than-expected falls, and adds it will impact EPS for companies in the sector by 5-25%.
Credit Suisse downgraded Tata Steel to "underperform" from "neutral" while maintaining its target price at Rs 340, saying valuations are no longer "supportive."
The investment bank also cuts its target price for Jindal Steel & Power to Rs 600 from Rs 534, citing higher costs at captive power plans and plans to scrap its iron ore and steel investment in Bolivia among its main reasons.
Shares in Tata Steel gain 0.66% to Rs 421.35, while Jindal Steel's NSE shares are up 0.82% to Rs 437.50.
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