Heard on the Street: Singapore AMC stocks up on SAIL

A Singapore-based fund, run by a money manager of Indian origin and one of the largest asset management company worldwide are said to be buying shares of Steel Authority of India ( SAIL).

Brokers said the two firms are accumulating shares of the public sector steel company. Though the reason for the purchases is not clear, analysts said SAIL will benefit from its merger with Maharashtra Elektrosmelt as it will bring down the steel giant’s cost of production significantly in the upcoming quarters.

Maharashtra Elektrosmelt, in which SAIL owns an over 99% stake, has a ferro alloys manufacturing capacity of around one lakh tonnes per annum at its Chandrapur facility, said analysts tracking the company. SAIL shares fell 5% to end at Rs 78.50 on Monday.