Shares of JSW Steel rose around two and half per cent in BSE intraday trade on Monday. The spike in share price of metal stock came after Life Insurnace Corporation (LIC) raised stake in JSW Steel. The LIC bought 4.85 crore shares of JSW steel through an open market order between August 3,2021 and September 1, 2022. With fresh shares, LIC stake in JSW Steel increased from 5.002% to 7.012%
The stock which was trading with a gain over two and half per cent to Rs 677.90 per share yielded a flat return in the past one year as on September 5, 2022.
Meanwhile, global brokerage house Nomura maintained a ‘Reduce’ rating on JSW Steel for target price of 548.
Earlier, brokerage firm Edelweiss though welcomed SC’s recent judgement raising iron ore production cap in Karnataka, however, it gave a reduce rating on JSW Steel for target price of Rs 471. It said JSW Steel is likely to benefit from higher availability of iron ore for both existing operations and ongoing expansion at Vijayanagar.
While we do not see any immediate benefit as regulations will unfold in due course, we do expect gains over medium term for NMDC, the major iron ore producer, and JSW Steel, the major iron ore consumer, in Karnataka, the brokerage had said.
“In case of JSW Steel, the higher high-grade iron ore availability within Karnataka comes as a shot in the arm for its Vijayanagar operations. Besides, reducing the cost for existing operations, this should allow the company to participate in the auction of category A and B mines in the future and improve its captive iron ore base,” Edelweiss had said in a note.
Meanwhile, shares of LIC were trading lower by more than half per cent to Rs 661.00 per share in BSE intraday trade on Monday