JSW Steel fell 0.61% to Rs 261.10 after ratings agency Fitch has revised the outlook on the company to ''negative'' from ''stable''.
Fitch has affirmed its long-term issuer default (IDR) rating on the company to "BB". The outlook on the IDR has been revised to negative from stable. The agency has also affirmed JSW's senior unsecured rating and the rating on its senior unsecured notes at "BB".The revision of the outlook reflects the risks in JSW's ability to deleverage and generate positive free cash flow (FCF) because of the various challenges in the Indian market, Fitch said. The disclosure was made during trading hours on Wednesday, 26 February 2020.
On Monday (24 February), JSW Steel said it was declared as a preferred bidder for an iron ore mine in Odisha, India. The projected iron ore resource in this mine as per tender documents is 39.4 million tonnes. JSW Steel said it has got a communication from the Director of Mines for the Jajang iron ore block of Keonjhar district. The auctions were held by the state government on 6 February 2020.
In the past one month, the scrip advanced 3.36%. On the technical front, the stock's RSI (relative strength index) stood at 41.886. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was currently trading between its 50-day moving average (DMA) placed at Rs 270.64 and its 100-DMA placed at Rs 255.93.
On a consolidated basis, its net profit slumped 87% to Rs 211 crore on a 12.1% drop in net sales to Rs 17,416 crore in Q3 December 2019 over Q3 December 2018.
JSW Steel is a flagship company of the JSW Group, an integrated steel manufacturer in India with an installed steel-making capacity of 18 million tonnes per annum (MTPA).
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