Three other steel counters, Jindal Strips, Saw Pipes and Jindal Iron and Steel also found place in the list of 20 turnover toppers on BSE on Monday. Resurgence of steel stocks is on the back of a sharp jump in their prices in the past couple of weeks.
Steel sector stocks have gained by a whopping 24-124 per cent in August so far and touched their new highs on Monday. The rally has been led by public sector behemoth Steel Authority of India which has more than doubled during just 11 days of trading in August so far. The stock closed at Rs 51.45 on August 18 as against Rs 22.95 on July 31.
On Monday alone, Steel Authority of India zoomed over 30 per cent to emerge as the top gainer among A-group stocks and closed at Rs 51.45. Essar Steel jumped 20 per cent on a single day to close at Rs 32.75 while others like Jindal Vijaynagar Steel and Jindal Steel gaining 10 per cent and eight per cent each.
The new fancy for steel sector stocks is backed by rising prices of steel both in the international and domestic markets. Strong demand for steel in China has kept the global prices at higher levels.
This has led to higher realisations and improved margins of steel companies which is making the markets re-rate these stocks, market sources said.
On Monday, the combined turnover of Steel Authority on NSE and BSE racketed to Rs 901 crore, 33 per cent of the total turnover of top 10 stocks of about Rs 2,761 crore. With a combined turnover of over Rs 515 crore, Tata Steel took the second spot. As a result, the market favourites Reliance, Infosys Technologies and State Bank of India were pushed to the third, fourth and fifth spot, respectively in the combined turnover on NSE and BSE.
Interestingly, Essar Steel was also among the list of turnover toppers, clocking aggregate volumes of just over Rs 100 crore on NSE and BSE.