Mumbai: BNP Paribas cut its target price on Tata Steel and Steel Authority of India (SAIL) and said it expects steelmakers’ margins to come under pressure in the first half of fiscal 2012.
The price target on Tata Steel was cut to Rs758 from Rs778 and on SAIL to Rs148 from Rs174. However, it raised its target on JSW Steel to Rs1,176 from Rs1,154.
“While steel equities could stay weak in the near term, we are positive on the second half of 2011 and 2012 demand outlook,” BNP Paribas said in a note.
It maintained a “buy” rating on Tata Steel and JSW Steel, and a “hold” rating on SAIL.