One of Dalal Street’s dividend stocks, Steel Authority of India (SAIL) shares, have a record date of March 24, 2023. However, on the record date, a significant number of SAIL shareholders chose to exit the PSU stock in exchange for a Re 1 interim dividend. It is anticipated that the state-owned metal stock per share will continue to decline. Today, morning deals saw the SAIL share price fall to 82.70 on the NSE, its lowest point of the day.
Stock market observers claim that as a result of rising steel prices on the international market, the PSU metal company’s profit margins are expected to improve. He added that rising metal prices might not work even in the context of China’s reopening because SAIL is expected to lose the export revenue it gained during the Chinese lockdown. According to him, a break on either side of the range can be assumed to indicate a bullish or bearish trend for the SAIL share. He advised SAIL shareholders to wait for a breakout or breakdown before entering a new position and keep the scrip below the stop loss of 80.
Why did the price of SAIL shares drop today?
“Metal prices including steel moved up in the wake of Chinese lockdown, resulting in an improvement in SAIL’s margin on its buffer reserves,” Ravi Singhal, CEO of GCL Broking, stated when discussing the factors that contributed to the decline in SAIL’s share price. also assisted. SAIL will expand its product income where Chinese organizations couldn’t send out because of the lockdown. Because of this, and in light of the Chinese reopening theme, a rise in metal prices may not result in an increase in the business’s margin because it will result in a decrease in export revenue. bound to lessen the focus on the Chinese reopening.”
Sumeet Bagadia, Executive Director of Choice Broking, stated, “SAIL is trading at par,” urging SAIL shareholders to hold shares. Since the 80-88 range, investors in this metal stock are advised to hold the scrip with stop losses below 80 at each level. since the 1980s-88 range He encouraged positional financial backers to hang tight for additional lucidity and try not to purchase at help levels as the stock might observer a sharp decay once it breaks 80 help.
“SAIL and other metal stocks are fundamentally weak,” Ravi Singhal, GCL Broking, advised SAIL shareholders, “my suggestion to SAIL shareholders is to exit on rise as the stock may go up since 74 76 level in the short term.”
SAIL Dividend Statement: “This is in continuation of our notice of even number dated March 10, 2023” was included in SAIL’s announcement to the Indian stock exchanges regarding the dividend payment. At its meeting on March 16, 2023, the Board of Directors approved, among other things, the payment of an interim dividend of Rs. 1 per Equity Share equal to 10% of the Company’s paid-up Equity Share Capital for the fiscal years 2022 and 2023. The Interim Dividend will be paid out in full on March 24, 2023.