Steel falls out of favour super fast. Should you sell?
A revival in commodity upcycle has lifted the BSE Metal index by 61% so far this year, outperforming the BSE Sensex which is up 6.8% for 2021.
Synopsis
Credit Suisse on Wednesday downgraded Tata Steel and Jindal Steel to neutral and JSW Steel to underperform saying that risk reward is not favourable with price-to-book values at decade high levels. The brokerage said peak of the global steel prices is likely over.
Mumbai: Brokerages Credit Suisse and JM Financial have toned down their optimism on metal stocks and believe the best part of the run-up might be over as valuations are at decade high levels and the frantic rally in steel prices may not sustain.
Credit Suisse on Wednesday downgraded Tata Steel and Jindal Steel to neutral and JSW Steel to underperform saying that risk reward is not favourable with price-to-book values at decade high levels. The
