Why steel stocks are furnace hot?
Apr 06, 04:04

On April 1, shares of both, JSW Steel and Tata Steel hit a 52-week high. Not to be left behind, SAIL breached the mark a few days later. On April 6, the three stocks were more in sync as all of them again rose to a 52-week high. This time, Vedanta and JSPL were also giving company. So what's leading to this steel/metal frenzy, when rest of the market seems to be spooked by the re-surge in COVID-19 cases? There are more reasons than one. Many of these companies just reported their best ever quarterly sales, steel prices got another 10 percent hike and demand continues unabated from customers in auto and infrastructure sectors. The cherry? Rating upgrades and better outlook by rating agencies.

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