Metal Stocks Outlook for the week – 08 to 12.05.2017
Metal Stocks Outlook for the week – 08 to 12.05.2017
( www.rupeedesk.in )
The shares of metal and mining companies are likely to extend losses in the coming week, especially if prices of base metals remain under pressure. Shares of Steel Authority of India, NMDC, Tata Steel, Hindalco Industries, and Vedanta lost up to 8% this week, whereas the Nifty Metal index ended down almost 4%. The sector also underperformed the benchmark Nifty 50 and Sensex indices, which generated flat returns this week. Apart from global base metal prices, Jan-Mar corporate earnings will be the major triggers for these shares in the near term. Next week, Hindalco Industries' US-based arm Novelis Inc will report its earnings. The stock, which lost nearly 7% this week, is seen extending losses due to weakness on technical charts. High raw material costs, coupled with a low-demand environment, may continue to keep movement subdued in these shares. The sector also lacks any new triggers, particularly after the Union Cabinet approved a policy for providing preference to Indian-made iron and steel products in government procurement. The Cabinet also approved the National Steel Policy 2017 that aims at trebling the country's crude steel manufacturing capacity to 300 mtpa and raise production to 255 mtpa by 2030-31 (Apr-Mar) from around 85 mtpa now. On the whole these two measures should give a fillip to the steel industry in the coming years and should be viewed positively.
Source : Cogencis Information Services Ltd.
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Metal Stocks Outlook for the week – 08 to 12.05.2017
( www.rupeedesk.in )
The shares of metal and mining companies are likely to extend losses in the coming week, especially if prices of base metals remain under pressure. Shares of Steel Authority of India, NMDC, Tata Steel, Hindalco Industries, and Vedanta lost up to 8% this week, whereas the Nifty Metal index ended down almost 4%. The sector also underperformed the benchmark Nifty 50 and Sensex indices, which generated flat returns this week. Apart from global base metal prices, Jan-Mar corporate earnings will be the major triggers for these shares in the near term. Next week, Hindalco Industries' US-based arm Novelis Inc will report its earnings. The stock, which lost nearly 7% this week, is seen extending losses due to weakness on technical charts. High raw material costs, coupled with a low-demand environment, may continue to keep movement subdued in these shares. The sector also lacks any new triggers, particularly after the Union Cabinet approved a policy for providing preference to Indian-made iron and steel products in government procurement. The Cabinet also approved the National Steel Policy 2017 that aims at trebling the country's crude steel manufacturing capacity to 300 mtpa and raise production to 255 mtpa by 2030-31 (Apr-Mar) from around 85 mtpa now. On the whole these two measures should give a fillip to the steel industry in the coming years and should be viewed positively.
Source : Cogencis Information Services Ltd.
