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| Steel Authority of India Ltd (SAIL) emerged as the seventh largest company of the country in terms of market capitalisation today pipping index heavyweights ITC, Wipro and Ranbaxy.
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| The steel stock, down in the dumps not so long ago, has managed to advance in the market capitalisation list by three notches in three trading sessions.
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| It entered the elite list of top 10 by capitalisation on August 13 replacing the public sector oil major HPCL.
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| Its market capitalisation was at Rs 21,271 crore today, a few shades lower than Infosys Technologies (Rs 23,115.51 crore) and State Bank of India ( Rs 22,630 crore).
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| In fact, the capitalisation of SAIL would have surpassed Infosys had it closed at Rs 55.96 while reaching to the level of Rs 54.79 would have enough to overtake SBI. As many as 18.8 crore SAIL shares were changed hands today with 13.9 crore stocks traded on NSE and the balance on BSE.
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| Tata Steel was the second highest traded stock on NSE while Essar Steel ranked second on BSE. The first six places in the elite list of top 10 companies was unchanged. ONGC, Reliance Industries, HLL, IOC, Infosys and SBI occupied the first six slots.
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| Market sources said, if the trend continued then SAIL would soon enter the top five companies in terms of market capitalisation. The scrip increased 30 per cent and closed at Rs 51.45 on NSE and BSE.
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| Analysts tracking the sector said, the rally in SAIL was primarily led by the upswing in the steel sector. All steel majors increased prices of flat products by around Rs 1,000 by mid-August. Moreover, the next steel price hike was expected within the next fortnight.
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| Also, SAIL was on its way to recovery and was expected to post net profit this financial year. SAIL sources said, it would record profits of around Rs 2,500 crore in three years.
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| Conservative share brokers wanted to make a caution note saying that a huge position was built up at the counter which might witness a reverse direction in case of a moderate bear pressure. They said only 1.37 crore shares of a total volume of 13 crore shares on NSE were delivery.
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