Shares of steel producers which had witnessed encouraging trend in the current fiscal year mainly on account of increase in product prices after two lean years might see a decline on market fears that steel producers may cut prices next month owing to lower offtake.
Trade sources said leading private sector steel producer TISCO was expected to lower steel prices and this pushed down the stock price of the company. The stock closed at Rs 116.20 on BSE, down about 7 per cent from Rs 124 registered on September 2.
On Monday , stocks of other steelmakers were also down. SAIL was steady at Rs 6.85 but down from Rs 8.80 of September 2. Similarly, shares of Essar Steel were down at Rs 6.30 from Rs 6.75 during the same period.
Jindal Steel was down at Rs 270.20 from its previous close of Rs 277.15 but still higher from the September 2 level of Rs 235.70. Jindal Iron declined to Rs 39.80 from previous day
