Price-cut buzz melts steel counters

DALAL STREET SPIKES

Steel sector stocks ended lower on rumours of cut in steel prices. BSE Metal index was the biggest loser, down 2.98 per cent to 5534.09. Among the big losers, Tata Steel plunged 5.5 per cent to Rs 339.90, on back of strong volumes of over 16.5 lakh shares.

Essar Steel plunged 7.6 per cent to Rs 46.50, Jindal Vijaynagar Steel dropped 6 per cent to Rs 247, Ispat Industries shed 5.6 per cent to Rs 17.70 and SAIL ended 3 per cent lower to Rs 49.10.

Sources said, most metal stocks witnessed selling pressure as the buzz in the market is that next round of cut in steel prices is round the corner.

"Rumours that steel makers would cut prices from July caused sell-off in steel scrips," a dealer said.