Tata Steel in intra-day trade today lost as much as 6.67% to hit 52-week low of Rs. 322.20 per share on the NSE. On the BSE, the stock hit a new 52-week low of Rs. 322.45 per share.
As per the Bloomberg data, the relative strength index on the stock was below 30, indicating it may be oversold. The stock traded at 6.5 times its estimated earnings per share.
Amid aggravating US-China trade war, Nifty metal hit an over 3-year low, down 4% in comparison to a Nifty surging to 10,900 levels.
In the category top losers were Tata Steel, Vedanta and JSW Steel down more than 5% and hit their multi-year lows, respectively. While others including Steel Authority of India (SAIL), Hindalco Industries, Jindal Steel and Power (JSPL), NMDC and Coal India were dragged between 2-5%.
Other the US-China trade tension, a huge downfall in the demand of steel is also adding to the declines in the stock.
While the stock has continued its downward trajectory for some eight months now, it is expected that any bounce back from current levels shall also be short-lived. As it is the stock has been on a losing streak since 2018 and further pressure both from global and domestic landscape can drag the stock lower to levels of Rs. 230-Rs. 250 per share.