Dealers attribute the sudden spurt in Jindal Strip to speculative deals coupled with the fact that the scrip is considered a favourite of the Big Bull. The stock has risen by nearly 30 per cent in the last few trading sessions. Prices on other counters like TISCO and SAIL have moved up over the last six months with TISCO moving up from Rs 138 to its current level of Rs 155, while SAIL has moved up from Rs 7 to Rs 13.

The steel industry is looking at the anticipated increase in infrastructure expenditure from the government as something to look forward to in the next fiscal. Besides, the industry is also looking forward to a 10 per cent hike in import duty from30 per cent to 40 per cent. However, analysts say the hike may be only 5 per cent. The industry is also expecting the government to reduce the excise duty from the current 15 per cent.

Analysts, however, say the excise duty cannot be lowered than the current levels as all other infrastructure sectors would expect similar reductions. Besides, they feel that the current excise duty at 15 per cent is quite low and a further reduction is not possible.

Although the industry is euphoric about the sops expected from the government, analysts feel the impact on the bottomline of domestic steel manufacturers will be limited. This is mainly because the demand for these products have not increased as few infrastructure projects have taken off. In fact, analysts expect a growth rate of only 3 to 5 per cent in this sector if demand remains at the current low levels.