Buy JSW Steel on dips: PINC Research

PINC Research has come out with its report on metal space. The research firm recommends buying JSW Steel on dips.

Government clears Cairn-Vedanta deal thereby allowing Vedanta Resources PLC to acquire 40% stake in Cairn India from Cairn Energy PLC, taking total stake in Cairn India to 58.4%, including 18.4% acquired by Sesa Goa. This is a positive for Sesa Goa, as now its 18.4% stake in Cairn India would become a part of controlling stake, instead of minority stake. However, Cairn's profitability is likely to come under pressure as Vedanta had agreed to royalty sharing with ONGC as part of this deal. Nevertheless, pending Shah Committee report on alleged illegal mining in Goa is a huge overhang on Sesa Goa. The stock is UNDER REVIEW.

JSW Steel's impending warrants: The management has indicated that it is likely that the 17.5mn warrants issued to the promoter group (due 15 Dec

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