Morgan Stanley cut its rating on Steel Authority of India Ltd to 'underweight' from 'equalweight' and lowered target prices on other Indian steel stocks, citing raw material costs, sluggish volume growth and declining return-on-equity. Morgan Stanley also cut SAIL's price target to Rs. 72 from Rs. 95. It also cut its price targets on Tata Steel , JSW Steel and Jindal Steel & Power.

The investment bank added it did like Tata Steel, calling it "the only company for which we project structural gains in return and profitability ratios."