Price cut melts JSW Steel

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The scrip was the biggest loser among A-group stocks, declining by 28 per cent following reports that the company may cut domestic prices to match global levels. The stock closed at a 52-week low from Rs 571.90 to Rs 410.65 on BSE within a week.

The company decided to cut prices this month because of softening demand in the global market due to the ongoing current financial crisis and a decline in global costs of the alloy. In the last month, the company had cut prices by Rs 2,000 a tonne.

The negative news also reflected on the counter, with the combined turnover on BSE and NSE declining by 34 per cent in the last week. A total of 4.37 million equity shares changed hands in the last week as compared with 6.61 million shares in the previous week.