Citi said falling steel prices, rising leverage and valuations made Indian steel companies unattractive.
The research firm said steel prices should normalise in 2019 as demand in world's second largest economy China will slow down to negative 0.4 percent next year against 3 percent growth in current calendar year.
Effective supply will likely increase & hot-rolled coil steel margin could be under pressure, Citi feels.
It said falling steel prices, rising leverage and valuations made Indian steel companies unattractive.
Hence, the brokerage house decided to downgrade Tata Steel & SAIL to sell from neutral & JSW Steel to sell from buy.
It also slashed price target sharply for JSW Steel cut to Rs 290 from Rs 410 earlier, Tata Steel to Rs 440 from Rs 620 and SAIL to Rs 40 from Rs 72.Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.