The Indian stock market traded on a positive note as traders and investors bet on swift economic revival amid surging numbers of COVID-19 infections in the country.
Sensex is up 36.99 points or 0.11% at 33993.68, and the Nifty up 2.80 points or 0.03% at 10049.50.
Metal stocks are under pressure with Nifty Metal down a percent dragged by Tata Steel which shed over 2 percent and was the top index loser. The other stocks which dragged included Jindal Steel and Power, Ratnamani Metals, Welspun Corp, NALCO and JSW Steel.
Gaurav Garg, Head of Research at CapitalVia Global Research Limited likes JSW Steel in the infrastructure and construction space which is placed at attractive valuations, and risk and reward are in favour of investors.
"We can see revival in metal sector as demand might come to track,” he added.
S&P BSE Metal was down half a percent with Coal India and SAIL down a percent each.
Global research firm CLSA is of the view that the recent rally in steel stocks is unjustified as fundamentals remain stretched with stocks up 15-21 percent in the past 1 month, according to a report by CNBC-TV18.
CLSA finds risk-reward to be unfavourable for Indian steel stocks and has downgraded both JSW Steel and Tata Steel from underperform to sell. It has set target for JSW Steel raised to Rs 185 from Rs 170 and Tata Steel stock price raised to Rs 304 from Rs 290 per share.
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