Steel sector could be bottoming out: Sandip Sabharwal, asksandipsabharwal.com

In a chat with ET Now, Sandip Sabharwal, asksandipsabharwal.com, says for Indian steel companies, the key is import restrictions which could come up in the budget

ET Now: Tata Steel came out with horrendous set of numbers. What happens here now?

Sandip Sabharwal: The steel sector is somewhat difficult to call but my guess it could be bottoming out because the balance-sheet are of most of these companies are so destroyed that it will be very tough for them to come back. So, there is a possibility that a lot of people will be looking for a turnaround like they did for GVK, GMR and all these infra companies. But then it gets postponed continuously so that is a big risk. Otherwise as far as steel prices go, they should bottom out now and there should be some recovery. I believe Tata Steel GDR went up yesterday some 2.8 per cent. That also reflects that people are tending to believe that the cycle for this commodity could be bottoming out. Now obviously for Indian steel companies, the key is import restrictions which could come up and that is something we will watch.