Steel, cement stocks drop on reports of hike in rail freight rates

Shares of four steel companies fell by 0.71% to 1.07% and shares of four cement companies shed by 0.18% to 2.86% at 14:45 IST on BSE on reports that Indian Railways today, 23 August 2016 hiked freight rates by up to 19%.

Meanwhile, the BSE Sensex was down 63.32 points, or 0.23%, to 27,922.22.

Among steel stocks, Bhushan Steel (down 0.71% to Rs 42), Tata Steel (down 1.07% to Rs 383.3), Steel Authority of India (down 0.9% to Rs 49.75), and JSW Steel (down 0.75% to Rs 1,755.1) edged lower. Jindal Steel & Power rose 1.92% to Rs 87.55.

Among cement stocks, ACC (down 0.33% to Rs 1,653.6), Shree Cement (down 2.86% to Rs 16,620), Ambuja Cements (down 0.18% to Rs 270.05), and UltraTech Cement (down 1.03% to Rs 3,826) declined.

Grasim Industries rose 0.41% to Rs 4,522.05. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

The hike in freight rates by Indian Railways would increase operational costs for steel and cement companies.

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