Steel stocks dip after Icra predicts consumption growth to slow in FY20

According to Icra, the demand environment is expected to improve somewhat in the second half of FY2020, following a likely pick-up in infra spending.

Steel stocks came under pressure on Thursday after rating agency Icra said domestic steel consumption growth may decelerate to around 5-6 per cent this fiscal, from 7.9 per cent in FY2019, "on the back of an unprecedented slowdown in economic activity".

The country’s GDP growth tapered to 5 per cent in Q1 FY2020. As a result, margin outlook for steelmakers has weakened in Q2 due to a sharp fall in steel prices and firm raw material costs, Icra said in its report. READ THE FULL REPORT HERE

Consequently, Steel Authority of India (SAIL) dipped 2.6 per cent to