InvestorQ : i bought 11000 SAIL@37.65... should i hold or sell
dinesh kumar made post

i bought 11000 SAIL@37.65... should i hold or sell

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Dia Deshpande answered.
12 months ago


You purchase price is fairly close to the current price although you must appreciate that the stock is currently quoting at a 52-week low. The rally in steel stocks last year was largely on the back of expectations of a massive steel capacity expansion in India. This was on the expectation that steel demand would grow three fold by 2030. However, the big challenge for Indian steel companies is the cost of production and in that Indian steel manufacturers have been losing out to other countries like China, Japan, Mexico and Korea that are able to manufacture at much lower costs. This has resulted in dumping of steel into India and put pressure on Indian steel companies. That is what is putting pressure on steel companies.

There are also concerns on the pricing front. Steel prices have been under pressure globally because; the world’s largest steel producer (China) has been facing a slowdown with the GDP growth rate falling to a 30-year low of 6.2%. In addition, the trade war that has been going on between the US and China also promises to derail steel demand. The current situation is really not conducive which is why most steel companies are making losses. In fact, net profit in the June quarter was down by nearly 80% compared to the previous four quarters and that has been putting pressure on prices. It is hard for steel to rally from here and you should use the first opportunity to exit the stock whenever you get a bounce closer to your price level.


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raj gaurav answered.
12 months ago


now that you have already bought , dont book losses. wait till the next quarter results. people are holding it at levels of 48 , 49.