Steel stocks up on bargain deals

DALAL STREET SPIKES

Steel stocks staged a smart recovery on Tuesday after Monday's crash. Most counters witnessed bargain hunting at lower levels on the back of renewed buying across-the-board.

Steel major Tata Steel gained 3.54 per cent to close at Rs 289.45 on the back of an impressive volume of more than 29.12 lakh shares on the BSE.

Others like Jindal Iron and Steel was up 3.49 per cent to Rs 257.30, Steel Authority of India gained 6.6 per cent to Rs 47.65, while Essar Steel edged up nearly 3 per cent to Rs 27.70. Essar Steel gained on the back of the company's robust results.

More than 7.9 lakh shares changed hands at the counter. Market analysts said steel stocks recovered smartly on bargain hunting at lower levels. However, a section of market participants are concerned of sustained growth in commodity stocks going forward.

"With China possibly turning exported of steel by the end of this year and huge capacity being build up, the commodity prices are expected to be under pressure, with margins been squeezed as supply will exceed demand," said a leading BSE broker.