Steel stocks hog limelight; Bhuwalka Steel star performer

In the last 15 days, midcaps and smallcap steel stocks have seen good buying interest and were among the top gainers on the bourses. Where a stock like Bhuwalka Steel has doubled in the last fortnight, stocks like Ispat Ind, Essar Steel, Jindal Steel and Llods have gained around 50%.

Sharmila Joshi of Prabhudas Liladher told CNBC -TV18 that for steel the story has been is in favour of a company which has control over raw material prices whether it is in terms of iron ore or whether its coal.

She further added, “We have seen in all the integrated plays is really doing much better with the kind of news flow that you are getting now that the global demand for steel is likely to stay strong. That just kind of reflects kind of stock movement that we have seen, not just the midcaps I would say but even in the frontline stocks. So more than base metals steel would continue to be a favorite play whether it is a Tata Steel or whether it’s some of maybe like a  Welspun Gujarat.”