With the revival of the steel sector and the sheen in the infotech sector disappearing, mutual funds (MFs) are showing interest in steel firms. Mutual fund holding in steel firms, estimated at 3 per cent at present, is likely to see a significant rise. The public sector Steel Authority of India (SAIL) has an equity investment of 0.496 per cent with at least 23 different mutual funds. While MFs hold about 5 per cent in Tata Steel, it is below 2 per cent in Jindal Steel & Power (JSPL).
According to a senior official at JSPL, the holding may go up to 10 per cent by the end of the current financial year.