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Tata Steel, JSW Steel may see further value erosion amid weak India demand

The shares already lost about third of their value this year

Shares of Tata Steel have fallen almost 30% so far this year, while that of JSW Steel lost 26% in Mumbai trading.    © Reuters

MUMBAI (NewsRise) -- Shares of Tata Steel and JSW Steel could face further erosion amid weak demand at home and falling global prices after India's top steel makers already lost about a third of their value so far this year.

The weak domestic demand comes as Asia's third-largest economy grapples with a slowdown amid tighter liquidity conditions that sap availability of credit. India's gross domestic product expanded at the slowest pace in almost six years between April and June. Automakers such as Maruti Suzuki India have cut production and fired thousands of workers in recent months after demand for cars and SUVs slumped. Investor pessimism has been further fueled as the prolonged trade war between the U.S. and China damped the outlook for the global economy.

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