Sail is currently on a high following reports that it will be included on the Nifty from 4 August 2003.

The scrip of the largest steel manufacturer in the country touched its new 52-week high of Rs 16.16 today. However, it eased slightly thereafter to Rs 16.10, up 5.57% over its yesterday's close.

Sail has also managed huge volumes despite the low turnover on the bourses today. By 13:00 IST today, volumes of close to 68 lakh shares were traded on BSE thus far. The value of trades on BSE was nearly Rs 11 crore compared to yesterday's Rs 13.48 crore in around the same time.

Sail has now risen 81% from the recent low of Rs 8.90 on 12 May 2003.

The scrip is to be included in the S&P CNX Nifty in place of Nestle from 4 August 2003. The inclusion is expected to further increase liquidity in the scrip and see huge activity on the counter. Inclusion or exclusion of stocks on the Nifty index is usually made on the basis of parameters including market capitalisation, liquidity and sectoral representation.

Expectations of good future prospects for the company in the current fiscal ended 31 March 2004 has also fuelled the rise.

Sail effected a turnaround in the fourth quarter ended 31 March 2003, by registering a net profit of Rs 241.65 crore compared to a net loss of Rs 417.07 crore in the corresponding period of the previous year. Total income increased by 25.5% to Rs 5,671.43 crore from Rs 4,519.99 crore in MQ 2002. For the full year, the company reduced losses to Rs 304.31 crore on a total income (net of excise) of Rs 17,591.09 crore. The steely performance precipitated from strong demand for steel and a rise in prices.

The PSU steel maker expects to reduce losses by more than 70% in 2003-04, but analysts feel, if steel prices as well as demand remain firm, the company will make profits for the full year ended 31 March 2004.

The sustained demand for steel in both domestic as well as international markets will continue to help Sail to post better results. Domestic demand should come from the buoyant construction, automobile and the capital goods industries. At the same time, a greater thrust on infrastructure projects, including national highway and roadway projects, will only serve to enhance demand for steel.

International demand, specially from China, is also expected to increase. Recently, the world's largest importer of steel announced higher annual quotas, which should result in a recovery in prices. It has decided to buy 9.2 million tonnes of steel from Indian companies over a one-year period following huge construction activity there.

For the five consecutive months till April 2002, Sail exported over one lakh tonnes of steel to countries like Italy, Thailand, Taiwan, China, Bangladesh, Nepal, Sri Lanka and the Philippines.

As on 31 March 2003, the government holding in Sail was 85.82%, while institutions and the public held 8.72% and 3.66%, respectively.