Metal Stocks
Outlook for the week – 30.06.2014 to 04.07.2014
(www.rupeedesk.in)
Tracking the broader market,
stocks in the metal space are seen trading with a positive
bias in the run-up to the Union
Budget for 2014-15 (Apr-Mar). However, gains may be
capped as the recent rally has
partly factored in the expected reforms in the Budget.
Any further weakening of the
rupee against the dollar because of higher crude oil prices
as a result of unrest in Iraq
would be another factor investors would look at next week. A
weaker rupee would benefit
companies like JSW Steel, for which exports constitute
around 20% of revenues. Further,
as the weak rupee would make imports expensive, it
would increase the prospects of
import substitution in India, resulting in higher volumes
for the companies.
According to media reports on
Thursday, as per an Odisha high court order, Tata Steel's
Sukinda chromium mine in the
state must remain shut till Jul 10, when the case filed by
competitor Indian Metals and
Ferro Alloys Ltd for redistribution of the mine comes up
for the its next hearing.
However, the movement in the company's stock in unlikely to be
affected much as a result of related developments.
