Metal Stocks Outlook for the week – 09 to 13.Jun.2014
(www.rupeedesk.in)
(www.rupeedesk.in)
Stocks of metal companies will
continue to see profit booking next week but the
underlying bias will remain
positive. Metal Stocks rallied Monday through Thursday,
buoyed by strong Chinese
manufacturing data, before succumbing to profit sales
yesterday. This week, Steel
Authority of India and JSW Steel raised prices for some of
their products for June.
State-owned Steel Authority of India raised prices of long product
prices by 500-1,000 rupees per tn
and raised those of flat products by 250-500 rupees a tn
while JSW Steel raised prices of
its value added products by 500 rupees keeping prices of
rest of its products unchanged.
Yesterday, JSW Steel confirmed that it will look at
importing high grade iron ore for
its plants. The company has seen scarcity of iron ore
due to the current ban on iron
ore mining in Odisha.
Fitch Ratings downgraded
Vedanta's long-term issuer default rating to 'BB' from 'BB+' in
a report released after market
hours yesterday as the firm believes that the company's
fragmented shareholding in its subsidiaries
restricts Vedanta's access to its cash flows.
Subsequently, the firm has also
withdrawn its ratings on the company as Vedanta has
stopped providing the adequate
information to Fitch. Vedanta Resources holds 58.3%
stake in Sesa Sterlite. Bullish
on the CNX Metal Index but believes it is in the overbought
zone and so may witness profit
booking in the short term, a pattern similar to the
constituents of the index. NMDC,
Sesa Sterlite, and Tata Steel are expected to see profit
booking next week.