JSW Steel Shares of one of India’s largest steel producers fell as much as 6.3 percent to Rs 141.8 on the National Stock Exchange. It is also the second biggest loser on the Nifty 50 index after Bajaj Finance.
Investec published a note on the stock citing the catch-22 situation that the steel mills like JSW Steel are in. The headwinds include shutdowns, forex headwinds and the high leverage. Investec mentions that the stock price correction poses a risk to incremental pledge cover required.
Shares trade at their lowest level since June 28, 2016 and are down nearly 60 percent from its 52-week high of Rs 314, made in May 2019.