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Steel stocks under pressure; Tata Steel, JSPL, SAIL down 4%

Nifty Metal index, the largest loser among sectoral indices, was down 1.5% against 0.1% rise in the Nifty 50 index at 02:45 pm

SI Reporter  |  Mumbai 

steel stock image
steel stock image

Shares of steel companies were under pressure with Tata Steel, Jindal Steel & Power (JSPL) and Steel Authority of India (SAIL) down more than 4% on the National Stock Exchange (NSE) after US President Donald Trump imposed tariffs of 10% and 25% on imports of steel and aluminium respectively on March 8th.

At 02:45 pm; index, the largest loser among sectoral indices, was down 1.5% against 0.1% rise in the Nifty 50 index.

Meanwhile, slipped nearly six-month low at Rs 607, down 4% on the BSE in intra-day trade, extending its past two days 4% decline after the company on Wednesday said that it has emerged as the top bidder for debt-laden Bhushan Steel.

In past one week, the stock has fallen 10% against 1.8% decline in the S&P BSE Sensex. The stock is currently trading at its lowest level since September 25, 201.

“The company has received a formal communication from the Resolution Professional of Bhushan Steel (BSL) that it has been identified as the highest evaluated complaint resolution applicant to acquire controlling stake of BSL under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code 2016 (IBC), as decided in the meeting of the Committee of Creditors (CoC) of BSL on March 6, 2018,” in a press release.

Following the communications, the advisors of the CoC and Resolution Professional of BSL are currently in discussion with on the resolution plan. The next steps in the process will be as per the stipulations under the CIRP of the IBC, it added.

According to Business Standard report, investors are worried about the massive premium paid by the company for Bhushan Steel as compared to its rival JSW Steel. Its bid for Bhushan Steel is pegged at over Rs 400 billion, which includes Rs 352 billion of upfront payment to financial creditors and another Rs 12 billion to operational ones.

S A I L 69.70 74.20 -6.06
TATA STEEL 605.05 635.20 -4.75
JINDAL STEEL 223.50 233.95 -4.47
NATL. ALUMINIUM 62.45 63.90 -2.27
NMDC 121.80 124.35 -2.05
HINDALCO INDS. 219.25 222.65 -1.53
HIND.ZINC 309.95 313.35 -1.09
VEDANTA 305.15 308.40 -1.05

First Published: Fri, March 09 2018. 14:52 IST