 "BNP Paribas downgrades JSW Steel on valuations")
BNP Paribas downgraded JSW Steel Ltd to "reduce" from "hold", citing expensive valuations after recent outperformance due to a delay in the US Federal Reserve's tapering of monetary stimulus in September.
The investment bank said checks with steel producers and traders suggested that the benefits of a weak currency are neutralised when the rupee is around 60-62 to the dollar.
"With the INR hovering at these levels, a sharp recovery in imports is unlikely and the export opportunity no longer looks as attractive," BNP Paribas said in a report.
BNP Paribas maintains its "hold" on Tata Steel Ltd and Steel Authority of India Ltd .
JSW Steel fell nearly 1%, while Tata Steel is up 1.34% and SAIL is down 0.38% at 11:02 am.