Jindal Strips Stuck On The Upper Circuit

The Jindal Strips share was locked at the 20 per cent upper circuit filter on the Bombay Stock Exchange just after noon on Monday with more than 74,000 shares changing hands by that time.

The share price was ruling at Rs 87.75 and orders for more than 20,000 shares were awaiting execution.

In the last two weeks the price of the stock has jumped by more than 53 per cent from Rs 57.25 on May 21.

According to marketmen tracking the stock the uptrend in the share prices could be attributed to bargain buying by investors who found the valuations attractive at the low prices. Jindal Steel is among the larger producers of stainless steel in the country with a market share of 40 per cent and the general bullishness in international prices of steel holds out good prospects for the company.

Prices of steel have gone up from $190 per tonne to $400 per tonne. The company manufactures stainless steel strips, wide strip hot and cold-rolled coils, and sponge iron.

The steel produced by the company is mostly used for utensils, while cold-rolled coils are partially used captively by a group concern for GP/GC sheets, and the remaining is sold to the automobile and two-wheeler industry.