We have been keeping positive bias on all the ferrous metal stocks, said SP Tulsian.
He said that Jindal Steel and Power and SAIL will keep showing with good profits because all have been disappointed to a greater extent.
Talking about Tata Steel, he said, Bhushan Steel acquisition will see the improvements in the EBITDA margin here in India and the struggle which they have been facing in the Europe is also seen to be coming to an end with Thyssenkrupp JV getting through. This will also see reduction in their debt. It is a non-recourse to Tata Steel and reduction to the extent of Euro 2.5 billion is closure to about Rs 20,000 crore is seen positive.
Talking about PSU banks, SP Tulsian said, “Apart from this report which may be as a trigger for buying even if you see the situation moving forward it is happening with a gradual pace, but I think that on the PSU bank front the bottom is seen to be having made and in fact the stocks have all seen in the trading squaring off positions and the consolidation mode.”
“PSU banks are more on a transformational phase and that will get reflected by end of September. We have been keeping the neutral to positive stance, at least the negative bias is not seen subsisting. So, this report may be seen as instrumental, but I think that stocks were warranting for all this type of short covering and fresh buying,” he added.