Among the dividend stocks on Dalal Street, shares of Steel Authority of India (SAIL) have a set record date of March 24, 2023. Yet many SAIL shareholders made the decision to sell their PSU stock on the record date for the interim dividend of Re 1 per share out of concern about a further decline in the state-owned metal stock. In early morning trading, the SAIL share price declined today and hit an intraday low of 82.70 rupees per piece on the NSE.
Stock market specialists claim that steel prices have peaked globally and that the market is now anticipating a decline in PSU Metal Company profitability. Although SAIL is anticipated to lose its export earnings it got during the Chinese closure, they claimed that even during the China reopening theme, growing metal prices may not function. They claimed that the price range for SAIL shares is currently between 80 and 88, and that a break of either side of the range would indicate a bullish or negative trend. They suggested that SAIL shareholders hold the stock while keeping their stop loss below 80 and wait for a breakout or breakdown before opening new positions.
Why did SAIL’s stock price drop today?
Ravi Singhal, CEO of GCL Broking, commented on the cause of the decline in the SAIL share price by stating, “After the Chinese lockdown, metal prices, especially steel, soared, which improved SAIL’s profits on its buffer reserves. As Chinese businesses were unable to export because of the lockdown, SAIL was able to enhance its export earnings. So, the company’s profits may not benefit from a rise in metal prices following the Chinese reopening theme because it would inevitably experience a decline in export revenue.”
SAIL share price is trading in the 80 to 88 range, and those who have this metal stock in their portfolio are recommended to hold the scrip while keeping stop loss levels below 80 per share, according to Sumeet Bagadia, Executive Director at Choice Broking. As the stock is range-bound in the 80 to 88 area, according to Sumeet Bagadia, a bullish or bearish trend can be determined on a break of either side of the range. He cautioned positional investors to wait for further information and to refrain from purchasing at support levels because the stock would have a significant decline after it broke the 80 support level.
“SAIL and other metal companies are fundamentally poor. My advise to SAIL shareholders is exit on rise as the stock may go up to 74 to 76 levels in near term,” said Ravi Singhal of GCL Broking in advising SAIL shareholders to sell their shares on the rally.
SAIL dividend information
SAIL said in a statement about the dividend payment to Indian bourses: “This is a follow-up to our even number notification from the 10th March 2023. At its meeting today, on March 16, 2023, the Board of Directors agreed, among other things, the payment of an interim dividend for the fiscal year 2022–2023 at a rate of Rs. 1 per equity share (10% of the company’s paid-up share capital). For the purpose of paying an interim dividend, the record date is March 24, 2023.”
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