Bhushan Steel: News Alert Analysis

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Bhushan Steel, one of the leading players in the Indian steel industry, jumped to a 52-week high on Monday after the media reports stated the company submitted final proposal for corporate debt restructuring programme.

According to media reports, Bhushan Steel submitted final proposal for debt restructuring under the Reserve Bank of India’s Scheme for Sustainable Structuring of Stressed Assets (S4A) scheme in the last month. S4A was unveiled by the central bank last year to make debt recasts easier.

Bhushan Steel has been in financial distress. The steel maker had Rs 44,477.90 crore debt on books at the end of fiscal year 2015-16.

On Monday, shares of Bhushan Steel rallied 13.46 percent to settle at Rs 68.30 on the NSE.

News Alert:
Heckyl news engine issued news alerts regarding Bhushan Steel’s corporate debt restructuring before market opening on April 10.

Our trending news widget, which monitors white-label media houses globally in real-time, picked up news item “Bhushan Steel gets S4A-ready, submits final proposal to banks” from Business Standard. It issued alert about news update at 6:10 pm on April 9.

Untitled design (4)
[Image 1: Trending News – Company Screen]

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[Image 2: Trending News – News Screen]

Streaming news widget, which captures tweets of trusted twitter handles in real-time, picked up tweet on the debt recast from ET Now at 8.21 am on April 10.

Untitled design (3)[Image 3: Streaming News – Company Screen]

Corporate announcements widget, which tracks company notification issued to stock exchanges, picked up notice issued by the NSE to steel maker asking for clarification on news update at 11:05 am.

Bhushan Steel_10-04-2017_10
[Image 4: Coporate Announcements]

Sentiment:
News update on the debt recast generated positive sentiment for Bhushan Steel on April 10. Heckyl sentiment score for steel maker jumped to 100 on Monday from 0 on the previous day. 

Bhushan Steel_10-04-2017_6[Image 5: Sentiment Chart]

Market Reaction:
On April 10, stock opened 4.65 percent higher at Rs 63 on the back of positive news update. In the early morning trade, the stock remained above Rs 63. However, at 11:05 am, the stock witnessed sudden spurt in price as the news spread after the NSE asked Bhushan Steel to clarify on debt recast proposal. Subsequently, the stock maintained strength and moved upward to touch a 52-week high of Rs 69.30 (See image 6 below). 

Share price rally was backed by huge volumes. Trading volume of shares more than triple on April 10.

Trading Opportunity:
Heckyl news alert, which was issued before market opening on April 10, has provided ample time to react on the news update. 
By using our news analytics platform, a trader could have spotted intra-day trading opportunity in Bhushan Steel. One could have bought the stock around Rs 63.50 in the early morning trade and then sold it subsequently towards closing for Rs 67.50, netting a profit of Rs 4 a share or 6.30 percent.

Entry
[Image 6: Share Price Chart]

There are plenty of such opportunities available every day, so don’t wait start using Heckyl News Analytics platform now.

To know more about Heckyl’s News Analytics platform, email us at info@heckyl.com

 

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