JSW Steel is trading higher by 3% at Rs 540 on reports that the company raised steel price by Rs 700-Rs 2,500 per tonne due to sharp fall in Indian rupee against the US dollar in past two months.
The rupee depreciation increases the landed cost of imported steel in India which gives an opportunity to domestic steel makers to raise prices.
However, we remain skeptical on steel demand in India during FY2014 given the slowdown in demand in auto, slow moving capex cycle, high interest rates etc. Hence, we believe the price hikes will eventually result in some discounts by some steel makers during 2HFY2014, says analyst at Angel Broking in a note.
The stock opened at Rs 526 and hit a high of Rs 544 on BSE. A combined 664,508 shares changed hands on the counter till noon deals on BSE and NSE.
The rupee depreciation increases the landed cost of imported steel in India which gives an opportunity to domestic steel makers to raise prices.
However, we remain skeptical on steel demand in India during FY2014 given the slowdown in demand in auto, slow moving capex cycle, high interest rates etc. Hence, we believe the price hikes will eventually result in some discounts by some steel makers during 2HFY2014, says analyst at Angel Broking in a note.
The stock opened at Rs 526 and hit a high of Rs 544 on BSE. A combined 664,508 shares changed hands on the counter till noon deals on BSE and NSE.
