www.rupeedesk.in
Stocks of major steel companies are expected to fall further in the coming sessions in the absence of fresh triggers on the fundamental side, and due to disappointing quarterly earnings from Tata Steel. Dismal results from the country's leading primary steel producer, Tata Steel, are expected to keep the sentiment low next week.
Tata Steel, the world's eighth-largest steelmaker by output, posted a net loss of 3.64 bln rupees for Jul-Sep as against a net profit of 2.12 bln rupees in the corresponding quarter of the previous year. Weak steel prices and slowdown in European economy hit company's European operations," Kaushik Chatterjee, chief financial officer of Tata Steel, said during a post-earnings conference call on Friday. The company's European operations account for two-thirds of its total production capacity. In the long-term, we remain bullish on Tata Steel as its upcoming Jamshedpur plant is expected to add to its domestic volumes. Tata Steel's proposed 3-mln-tn steel plant in Jamshedpur is scheduled to be commissioned in Jan-Mar.
