Metal Stocks
Outlook for the week 08 to 12.09.2014
( www.rupeedesk.in )
Stocks of metal companies is
expected to be subdued next week on caution ahead of the
Supreme Court's next hearing on
the fate of the coal blocks allocated since 1993,
scheduled on Tuesday.
While the first hearing on Monday
turned out to be a non-event, the second is expected to
result in some developments.
If the coal blocks are
de-allocated, everything will get turned on its head. Investors will
lose confidence in India all
these companies with coal blocks will see their worth
plummet.
Complete de-allocation would hit Jindal
Steel and Power the most, followed by Hindalco
Industries. Jindal Steel's Utkal
B-1 coal block in Odisha is the key source of raw material
for its Angul plant while the
Talabira-II mines have been jointly allocated to Hindalco and two state-owned companies.
