Metal Stocks Outlook for the week – 20 to 24.02.2017
Metal Stocks Outlook for the week – 20 to 24.02.2017
( www.rupeedesk.in )
Stocks of major mining and metal companies are likely to move in narrow range with a negative bias in the next few session, after falling for two consecutive weeks. There is no major trigger for the stocks next week. The Nifty metal index has fallen by 2.4% over the last two weeks. Not much has changed in terms of volatility in prices for both ferrous and non-ferrous metals. Rise in iron-ore prices has offset any gains from the subsiding of coking coal prices for metal companies. Coking coal is a key input used by the steel industry. A cautious view on the sector, as key policy decisions in China and the US could define the medium-term road map for the global metal and mining sector. Bullish on Vedanta and Hindalco stocks. Aluminium and iron-ore have done well for Vedanta. The company has also ramped up its capacity, which is likely to reflect in its top line in a few quarters. For Hindalco, aluminium and copper will bring gains. Aluminium brings 17-18% of Hindalco's revenues while copper contributes 7-8%.
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Metal Stocks Outlook for the week – 20 to 24.02.2017
( www.rupeedesk.in )
Stocks of major mining and metal companies are likely to move in narrow range with a negative bias in the next few session, after falling for two consecutive weeks. There is no major trigger for the stocks next week. The Nifty metal index has fallen by 2.4% over the last two weeks. Not much has changed in terms of volatility in prices for both ferrous and non-ferrous metals. Rise in iron-ore prices has offset any gains from the subsiding of coking coal prices for metal companies. Coking coal is a key input used by the steel industry. A cautious view on the sector, as key policy decisions in China and the US could define the medium-term road map for the global metal and mining sector. Bullish on Vedanta and Hindalco stocks. Aluminium and iron-ore have done well for Vedanta. The company has also ramped up its capacity, which is likely to reflect in its top line in a few quarters. For Hindalco, aluminium and copper will bring gains. Aluminium brings 17-18% of Hindalco's revenues while copper contributes 7-8%.
