Stable H2 outlook for India steel makers, says Fitch

Rating agency Fitch says the outlook for Indian steel makers rated by it will remain 'stable' in H212, despite the slowdown in the growth of domestic steel demand.

The agency, in its half year sectoral outlook titled, 2012 Mid-Year Outlook: Indian Steel expects the growth in demand for steel to range between 6 per cent and 7 per cent for the whole of 2012, with the pace of activity picking up from October after the monsoons.

It said the proportion of stable rating outlooks in its portfolio is 96 per cent.

"The slowdown in domestic demand growth stems from India's unfavourable macroeconomic environment," Fitch said in a statement.

Fitch has revised downwards its forecasts for real GDP growth between 6.5 per cent and 7.0 per cent for the financial year ending March 2013 and 2014, respectively, down from its previous forecasts of 7.5 per cent and 8.0 per cent.

Less-than-normal monsoons could also depress economic growth, it said.