Metal Stocks Outlook for the week – 22 to 26.05.2017
Metal Stocks Outlook for the week – 22 to 26.05.2017
Next week, stocks of metal and mining companies will take cues from political developments in the
US and the implications of tax rates under the goods and services tax. Concern about US President
Donald Trump being impeached has weighed on stocks of metal companies globally as well as
domestically, most of which were subdued this week.
Political uncertainty in the US is likely to make it difficult for Trump to pass his $1-trln
infrastructure spending plan through the US Congress this year, which is likely to hit demand.
Stocks of most metal companies had rallied after Trump took office due to hopes of higher
infrastructure spending in the US.
Another major development for shares of metal companies is the rates under the goods and services
tax. Iron and steel, most copper products, and aluminium alloys will be taxed at 18% under the new
indirect tax regime. However, the impact of these rates is not clear yet.
This week, three major companies in the segment--Tata Steel, JSW Steel, and Vedanta--reported
robust earnings. The week ahead is expected to be light in terms of earnings, as Hindalco Industries
will detail its earnings only in the last week of May. Jindal Steel and Power will report its earnings
on Tuesday.
Source : Cogencis Information Services Ltd.
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Metal Stocks Outlook for the week – 22 to 26.05.2017
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Source : Cogencis Information Services Ltd.
