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BNP Paribas downgrades JSW Steel to ‘reduce’,maintains ‘hold’ on Tata Steel

Written by Reuters | Mumbai | Posted: September 26, 2013 11:52 am

BNP Paribas downgrades JSW Steel Ltd to “reduce” from “hold”,citing expensive valuations after recent outperformance due to a delay in the US Federal Reserve’s tapering of monetary stimulus in September.

The investment bank says its checks with steel producers and traders suggest that the benefits of a weak currency are neutralised when the rupee is around 60-62 to the dollar.

“With the INR hovering at these levels,a sharp recovery in imports is unlikely and the export opportunity no longer looks as attractive,” BNP Paribas said in a report.

BNP Paribas maintains its “hold” on Tata Steel and Steel Authority of India Ltd.

JSW Steel falls nearly 1 per cent,while Tata Steel is up 1.34 per cent and SAIL is down 0.38 per cent at 1102 am.

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