Mittal-Arcelor deal fails to lift steel shares

New Delhi, June 26 (UNI) The Mittal Arcelor deal failed to lift the sagging morale of the steel scrips in India, which fell steeper than the rest of the market by a margin of 6-8 per cent.

The resultant company Arcelor Mittal will be producing 10 per cent of the world's steel.

Analysts said the takeover of Arcelor by Mr L N Mittal could force further consolidation in the global steel industry and the Indian players like Tata Steel and Steel Authority of India Ltd could not remain insulated from the global trends.

According to expert opinions coming from organisations like Steel Business Briefing the impact of the Arcelor Steel merger will be limited on the upside.

Although the benchmark Sensex fell by 3.56 per cent, industry leader Tata Steel saw a sharp erosion in its value by about 7 per cent. Jindal Steel fell even sharper by 9 per cent both in NSE and BSE, while SAIL slipped by 8 per cent.

Overall, the Sensex was down by about 370 points.

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