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Stocks of metal companies are seen tracking the broader market next week amid lack of
any specific triggers, with Tata Steel's Jan-Mar results in focus. Results of general
elections, due next week, are seen as single most important factor driving the market.
Tata Steel will declare its results on Wednesday. The steel major's sales for Jan-Mar are
seen at 400.2 bln rupees, up 17% on year, while consolidated net profit is seen at 10.47
bln rupees as against a loss of 65.28 bln rupees a year ago.
ArcelorMittal announced its Jan-Mar results on Friday, reporting a net loss of $200 mln
against a loss of $300 mln a year ago. The company also said it sees apparent steel
consumption growth of around 2-3% in 2014, higher from its previous forecast of 1.5-
2.5%. ArcelorMittal is the largest steel player in the world and its results are seen as an
indicator of the overall trend in the sector.
During the week, JSW Steel, Steel Authority of India, Jindal Steel and Power, and
Rashtriya Ispat Nigam all hiked prices of their long products by around 500-1,000 rupees
per tn. A likely pick-up in construction activity before the monsoon is driving prices of
long products in the country.
Vedanta Resources has announced that it will not look to source bauxite from Niyamgiri
in Odisha, and will do so only after consent is received from the local community,
signalling an end to the feud between the company and the environment ministry and
Odisha locals, and leaving the company's 1 mln-tn-per-annum alumina refinery plant in
Lanjigarh in limbo.
Vedanta Resources holds a 58.3% stake in Sesa Sterlite. Chopra is bullish on Sesa Sterlite
too and has pegged a target price of 215 rupees in two months.
Stocks of metal companies are seen tracking the broader market next week amid lack of
any specific triggers, with Tata Steel's Jan-Mar results in focus. Results of general
elections, due next week, are seen as single most important factor driving the market.
Tata Steel will declare its results on Wednesday. The steel major's sales for Jan-Mar are
seen at 400.2 bln rupees, up 17% on year, while consolidated net profit is seen at 10.47
bln rupees as against a loss of 65.28 bln rupees a year ago.
ArcelorMittal announced its Jan-Mar results on Friday, reporting a net loss of $200 mln
against a loss of $300 mln a year ago. The company also said it sees apparent steel
consumption growth of around 2-3% in 2014, higher from its previous forecast of 1.5-
2.5%. ArcelorMittal is the largest steel player in the world and its results are seen as an
indicator of the overall trend in the sector.
During the week, JSW Steel, Steel Authority of India, Jindal Steel and Power, and
Rashtriya Ispat Nigam all hiked prices of their long products by around 500-1,000 rupees
per tn. A likely pick-up in construction activity before the monsoon is driving prices of
long products in the country.
Vedanta Resources has announced that it will not look to source bauxite from Niyamgiri
in Odisha, and will do so only after consent is received from the local community,
signalling an end to the feud between the company and the environment ministry and
Odisha locals, and leaving the company's 1 mln-tn-per-annum alumina refinery plant in
Lanjigarh in limbo.
Vedanta Resources holds a 58.3% stake in Sesa Sterlite. Chopra is bullish on Sesa Sterlite
too and has pegged a target price of 215 rupees in two months.
