Dear Balu,

The only caveat to the scenario you portray is the strength of the global economy. If it holds up and demand for stainless steel holds up, then it will be good for Rohit. Remember, most of Rohit's sales are international and hence the key is for the global economy to hold up better. Indian FeCr prices are ridiculously low, compared to the European/chinese spot prices and so what happens in India doesn't really matter. But what happens elsewhere does matter.

A SA Ferro Chrome major that I track has lost 75% of its value in 2 months ago and that was bad. International Ferro Metals (listed on the LSE) has fallen from 168P in July to 40P last week. It has bounced a little to 60P, but still there is lots of uncertainity around demand in China and elsewhere, in light of the perceived global growth troubles.

Oil prices need to come down much much more for inflation and economies to stabilise. And I believe that they will. I see them in the 70-80 dollar range by the year end, as demand for oil is cratering in the western economies. In the near term, FeCr prices could be weak and this could impact the share prices.

Companies like Facor, Ferro, Balasore, GMR are all stuck and are NOT moving up. I was pleasantly surprised that Rohit is on the up move in the past 2 days and this is a good sign. At least some leadership is being shown.

Valuation-wise, it is very cheap and deserves to be higher. Will te market listen????? We can only hope....

Dear balu,

I still hold Rohit and I believe that there is some news that is leaking to operators and that is why it is running up in the last 2 days, when the rest of the sector is stuck badly. Maybe they have managed to secure some mines in Africa. :-) I bought some near the bottom recently (low 80s), after having sold between 110-120. It is the most pregressive company in this sector and anyone wanting exposure to the sector should be in this company.

This is almost the end of the quarter and we should see a traditional bounce in all FeCr companies. Longer term, the situation is very uncertain. FeCr have been moving down slowly on the back of slowing demand this quarter. Whether this is because of summer slowdown in europe/olympics in china - we don't know. That is the key to the share price in the medium term. Short-term, we will see this over 100.

Good luck....

Hi Emkay and other boarders,

As we have duly noted the financial markets are a lot stable now on the back of a three-pronged strategy from the Fed - 1. A plan to create an institution to take up toxic assets - read sub-prime mortgage backed securities, from financial institutions 2. in cohorts with European Central banks and Japan, to pump short-term funds into the system to generate liquidity and free up money markets and 3. Temporary ban on short-selling in financial stocks (also applied to the UK by the FSA). This has cleared up the financial air quite a bit in both Europe and the US. POint 1 is the key to get the fin institutions off their feet.

I don\\`t think Morgan Stanley\\`s standing in the stock market is a big concern now, with the share rallying nearly 200% from the lows on Thursday at to today (Friday). All this bodes well for the health of the consumer in the US and Eruope and this has a big nearing on the health of our markets too (in the medium term).

I think most of the selling by the FIIs this week, close to about .2 billion net, must have been done by Lehman\\`s Subsidiaries in India or their offshore investment arm. We did see this kind of manic selling in the Indian markets by FIIs back in March and this was hugely led by the mass liquidation by Bear Stearns, who had to pull out of India.

I think more sanity will come back to our markets next week and we should see the mid-caps and small-caps do their jig and start rallying on the back of the sensex based rally in the past 2 days.

Rohit held up well compared to the likes of Ferro Alloys and Facor Alloys; both were down for the day. Guj NRE coke also moved up and I believe that this share was also badly beaten up for no reason. So was Rohit. I\\`m still betting on a rally between late Sept and early October, in expectation of good results and this should take the share past a 100. I don\\`t know if it will go back to the old-high any time soon, but a move past 100 is definitely on.

Good luck....

Hi Epi, -Q- I believe that there is some news that is leaking to operators and that is why it is running up in the last 2 days when the rest of the sector is stuck badly. Maybe they have managed to secure some mines in Africa. :-) -UQ- Hope you have some strong reasons for the 'belief'. I don't think that is the case. It is just some operator's play. in my experiance, which is little, all these operators, 90% of the time, will have blessings from management to manipulate the price. No +ve news, no -ve news. Why the sudden upper circuits when others in the same sector are going down. Today Impex ferro also locked in upper circuit at 10%. Who ever operating in these 2 scripts are just blocking entry/exit options for retail investor(most of the days). No wonder regulators are keeping tabs in these 2 scripts. Regards, Sri...

Dear epi, Thanks a lot for your message blending global demand for FeCr..! Hope the Market will understand and price Rohit accordingly in due course..! All the Best..! With thanks, -sbalu...

Dear epi, Thanks a lot for your immediate response...! I hope Rohit will be a 'force to be reckoned with' in 2009..! All the Best..! With thanks, -sbalu ...