Domestic steel prices are unlikely to fall sharply in the short term, according to a research note by Credit Suisse.

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The note said that Indian domestic steel prices were now at an 11-17 percent discount to imports from China and other countries with which India has signed a Free Trade Agreement.

Credit Suisse said China's decision to cut export rebates was also a positive for steel prices in India.

It said that a favourable supply-demand balance and companies' decision to pass on higher costs to consumers should support steel prices globally.

Credit Suisse's favorite bets are Tata Steel and Jindal Steel and Power Limited.

JP Morgan is overweight on SAIL with a price target of Rs 105. It said that the company's FY21 debt was at historic lows and that could reduce further. Also, volume sales for the March quarter was at a record high.

The broking firm said SAIL was among the cheapest steel stocks.

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