Receding concerns to bring back spotlight on Indian steel players

With firm demand and better realisations outlook, analysts remain positive on the earnings potential of Indian steelmakers

The Tata Steel stock on Friday last week was among the top gainers with a 6 per cent jump. The rally in the stock not only signals the end of weak fundamentals for the company but it is also possibly a precursor to the better days that awaits the steel sector.

Sales volumes published by steel players, favourable news flow from China, particularly near-term concerns on slowdown receding, and the resultant comfort it brings to the Indian market as the risks of cheap imports from China is diminishing reflect positively on Indian steelmakers.  

In fact, analysts say that with domestic prices firming