InvestorQ : What is your view on buying steel stocks like Tata Steel and JSW Steel at current prices? Does the sector look underpriced at current levels?
shrinidhi Rajan made post

What is your view on buying steel stocks like Tata Steel and JSW Steel at current prices? Does the sector look underpriced at current levels?

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Riya Dwivedi answered.
1 year ago
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India Ratings has downgraded the outlook for the steel sector to negative due to the lag effect of the Chinese virus syndrome. Most steel companies in India have already given up a lot of value in the last few months due to weak demand from China. The global slowdown is also taking its toll on the steel sector. In addition, the steel sector had also been facing the issue of rising input costs, which has hit their profitability in a big way. It may be too early to start bottom hunting on steel stocks and ideally you must wait for the cycle to turn around and Chinese investment demand to pick up. That will be the sustained growth for the steel sector. Right now, it may be just too early.

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