Stating risk-rewards turn unattractive after the recent rally, domestic brokerage firm Kotak Institutional Equities has downgraded Tata Steel from a 'Reduce' rating to a 'Sell' rating with a target price of Rs 145, which indicates a downside of 9% from the previous closing price of Rs 159 per share.
The brokerage anticipates that Indian and European steel spreads will remain pressured due to increased imports, a sluggish export market, and delayed cost benefits, despite recent stimulus measures from China. Kotak noted, "Steel margins are likely to be under pressure in the near term."
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