FIIs Holding is interested in Indian steel companies

Shares of Indian steel companies have reappeared on the radar of FII's foreign institutional investors, who are gradually increasing their stakes in companies such as Tata Steel and SAIL.

The data provided for the last quarter, which ended in December 2013, shows that almost all major steel producers report an increase in the share of FII holdings compared to the previous quarter. Perhaps this trend is caused by a slight increase in demand, as evidenced by the results of metallurgical companies in recent months.

Analysts say that "Steel companies are providing data on improved production volumes and a slight increase in prices of 2-4 percent over the past four months. Experts believe that price increases are likely to persist over the next two quarters."

However, domestic brokerage firms that do not wish to present themselves officially report that "Domestic demand remains weak, sales volumes increased mainly due to exports and import substitution."

The interest of FII holdings in increasing their shares in Indian steel companies appeared for the first time at the end of the fourth quarter of 2013. And throughout the year, FII, on the contrary, cut its shares in Indian steel companies amid fears of a weak profit forecast in the metallurgical sector.

Currently, global steel prices have declined, but Indian producers have managed to keep prices down at the moment due to sectors such as automotive, consumer durables and construction.