Robust January sales boost steel stocks
Thursday, 4 February 2010
MUMBAI, Feb 03 (Commodity Online): Steel stocks gained on the bourses Wednesday pulling the benchmark index, Sensex to positive gains. Leading steel stocks posted moderate gains on the Bombay Stock Exchange (BSE) mainly on the back of improved sales figures for January 2010.
Top private steel makers including JSW, Essar and Ispat have reported strong footing with up to 30 per cent growth in sales volume in January over the year ago period boosted by robust demand from automobile and consumer durable sectors.
The stock price of JSW Steel Ltd (BOM:500228) gained close to 3 per cent to Rs.1002.50, while Ispat Industries Ltd (BOM:500305) traded at Rs.20.10 up by 1.7 per cent. Tata Steel Ltd (BOM:500470) gained 2.78 per cent to Rs.588.20 and Steel Authority of India Ltd (SAIL) (BOM:500113) surged by 2.27 per cent at Rs.213.90.
According to market experts, the rise in construction activities fuelled volume growth for the metals, thereby indicating that recovery in demand is broad-based and is gathering pace. After being hit by the economic slowdown that forced some steel producers to cut production in October-December 2008 due to low demand, steel consumption had grown 8 per cent in the first nine months of the year ended December 2009.
Top private steel makers including JSW, Essar and Ispat have reported strong footing with up to 30 per cent growth in sales volume in January over the year ago period boosted by robust demand from automobile and consumer durable sectors.
The stock price of JSW Steel Ltd (BOM:500228) gained close to 3 per cent to Rs.1002.50, while Ispat Industries Ltd (BOM:500305) traded at Rs.20.10 up by 1.7 per cent. Tata Steel Ltd (BOM:500470) gained 2.78 per cent to Rs.588.20 and Steel Authority of India Ltd (SAIL) (BOM:500113) surged by 2.27 per cent at Rs.213.90.
According to market experts, the rise in construction activities fuelled volume growth for the metals, thereby indicating that recovery in demand is broad-based and is gathering pace. After being hit by the economic slowdown that forced some steel producers to cut production in October-December 2008 due to low demand, steel consumption had grown 8 per cent in the first nine months of the year ended December 2009.