Indian Equity Market:Metal:Updated on 13th September: Steel Sector Tata Steel:

13th Sept.2016:- Tata Steel:
Q1-2016 Loss Rs.3183/-Crores.
SWOT analysis of Tata Steel Proposed Effective Restructuring of its Foreign Business::-

Strengths:- Very Good Plants in 

·         Port Talbot,

·         Netherland,

·         Speciality Steel in Yorkshire,

·         and Pipe Mills in Hartle Pool.

Weaknesses :- High Cost of running Plants and British Steel pension Fund,

 Opportunities:-For Ist Two Plants possibility of 50:50 Joint Venture Between  Tata Steel & Thyssen Krupp Germany.

Proposed 25% Investment by British Government.

Purchase of Last Two Plants by Mr Sanjeev Gupta Indian Origin Business Man of UK.

Threats :- To explore Possibility of Cost Reduction by 100 Million Pound.

Suitable outcome for British Steel Pension Scheme1.30 Lac Members and deficit Pound 70Crores. Discussion with British Trade unions.
Total Borrowings:-Rs.75259/- Crores as on 30th June 2016: Rs.71798/-Crores including European Business Rs.22500 /- Crores.



10th July 2016:-

A.Buy back of Shares by Coal India Ltd is a certainty: The Successful completion of Shares by Seven subsidiaries have resulted in Huge Cash in the Hands of Coal India Ltd. and available for buy back of its own Shares. 

2nd June 2016:- Coal India Ltd.(CIL) has increased its Product prices by 5%. CIL share has picked up on BSE.

24th May 2016:-
Coal India Ltd.:-  This Share is now totally bottomed out. At Current Valuation the Share is strongly recommended to Purchase.

24th May 2016:

Buy Tata Steel at around Rs.325/-
Earlier News:-
Tata Steel is still favourite of Bourses at Current of Rs345/- the Share Seems Attractive. Target is Rs.400/- 
MIP to provide temporary relief to steel industry:
Other Factors are also Counting:-

1. Adverse demand-supply equation that the Steel industry is likely to face in the short to medium term, it said. 
2. Poor Demand Growth:- India's steel consumption growth improved driven by automobile and construction sectors. 

 Tata Steel saw its consolidated net profit during April-December 2015 shrink to one-tenth of what it was a year ago. With its overseas operations facing headwinds too, the company booked an impairment charge of over 7,900 crore on its European business in the September quarter.
 There is an inverse correlation between the prices of the US dollar and commodities.

With dollar index peaking, sectors like metals, mining may outperform Defensives  

Moderation in the US dollar is usually positive for Indian equities and currency. 
The fall in the dollar may lead many investors to increase their allocation to cyclical stocks than to defensive stocks.

MIP 'game changer' for steel;

The government has decided to impose a minimum import price for steel products, something that is likely to make import prices of the alloy costlier than local prices. What does this mean for Indian companies?

 The government has decided to impose a minimum import price for

    steel products, something that is likely to make import prices of

    the alloy costlier than local prices. What does this mean for Indian

    companies?

It is a bold move, a minimum import

price (MIP) for steel products that is likely to make many imported

steel products costlier than domestic ones. This comes following months

of complaints from steel companies that cheap Chinese imports were

undercutting Indian steel companies and hitting their margins.

Following the decision, the MIP for hot rolled coil (HRC) steel has been

set at USD 450 per tonne, which would result in a landed price of about

USD 600 per tonne after customs and safeguard duty. The ruling domestic

price of HRC steel is about USD 500 per tonne, something that will

likely move up around or before the government's MIP directive comes

into effect on March 1.

It is the first time in 15 years the country has imposed MIP -- and said it would give a much needed shot in the arm to local steel companies,

which have suffered from over a year of falling prices.