Market Movers: Steel makers’ stocks brace themselves for a harsh winter

Steel companies have benefited immensely over the past 12 months from an upswing in global demand as well as supply shortages that have allowed companies to raise prices persistently over the last year.

However, the calamitous decline in steel futures in China because of a rapidly slowing Chinese economy is raising concerns of a similar scenario in India. While steel companies did raise prices again earlier this month, some analysts are skeptical about how long they will be able to sustain it.

Domestic demand is yet to show the spark that investors have been betting on and at the same time, China’s slowdown is making the export demand scenario pretty hazy. Safe to say, investors are getting worried as was reflected in the 2-4 per cent slide in steel stocks today.


makes blockbuster debut

For all the skepticism and doubt thrown at its way, Nykaa did what Zomato did a few months earlier – let its performance do the talking.

The company’s shares are listed at an over 80 per cent premium to its issue price today, bettering the premium that Zomato’s stock had commanded during its listing. The listing has shown that investors are willing to buy legitimate stories of growth even if it commands premium valuation given how scarce high-growing companies are in India’s equity market.

For all their track record and history, most Indian listed companies are unable to even match the nominal GDP growth of the country. On the other hand, companies like Nykaa are offering a piece of a future that could be deeply rewarding.


India Cements plummets on poor numbers

One of the largest holdings of Radhakishan Damani, outside D-Mart, came in for a beating from investors today after reporting weak numbers for the quarter ended September.

The cement maker’s stock fell over 5 per cent as cost pressures saw the company’s margins shrink to 11.22 per cent in the reported quarter from 21.94 per cent a year ago. The company’s top line, as well as bottom line performance, was also not much to write home about.


An obscure company enters the hot sector

Any company that has some capital to throw around today wants to be an early entrant in the electric vehicle sector. If they can’t make the cars, they want to make the charging stations that will power the cars.

Modison Metals, a little-known name to investors, recently announced that it has entered a partnership with RENERA and LDrive to enter the manufacturing and assembly of battery storage systems and EV charging infrastructure in India. Investors were impressed as the company’s stock rose nearly 2 per cent.