Morgan Stanley has maintained overweight call on Hindalco, equalweight on Vedanta and underweight on SAIL.
The global investment firm slashed price targets for not only these two stocks, but also other metal stocks. Hence, SAIL, Vedanta and Nalco were down 1-3 percent.
Morgan Stanley said domestic steel profitability is at a decadal peak now and valuations, too, are at a premium to history for large steel stocks.
Domestic demand risk & high leverage also added to near-term concerns, it feels. Hence, the research house prefers stocks with earnings visibility & strong balance sheet.
The investment firm has downgraded JSW Steel to underweight from equalweight and reduced target price by nearly 25 percent to Rs 278 from Rs 369 earlier.
It also downgraded Jindal Steel to equalweight from overweight and slashed price target by 45 percent to Rs 174 from Rs 314 earlier.
Morgan Stanley has maintained overweight call on Hindalco, equalweight on Vedanta and underweight on SAIL, but reduced target price to Rs 290 from Rs 295 earlier, to Rs 235 from Rs 263 and to Rs 53 from Rs 75 respectively.
The brokerage firm upgraded Coal India to overweight from equalweight, but slashed target price to Rs 296 from Rs 306 earlier.