Metal Stocks
Outlook for the week – 13 to 17.10.2014
( www.rupeedesk.in )
Shares of metal companies are
expected to trade with a negative bias next week due to
disappointing India industrial
growth in August and weak Chinese manufacturing data. India's
Index of Industrial Production
growth in August at 0.4% was much lower than 2.3%.
Since China is the largest
consumer of most industrial metals, weaker Chinese PMI has
adversely impacted the outlook
for non-ferrous metals. Expectations of an increase in interest
rates by the US Federal Reserve
in CY15 (calendar 2015) and with quantitative easing coming to
an end, the Dollar Index has
strengthened to levels of 85.8, which is also dampening sentiment.
The CNX Metal Index has fallen
3.67% since Oct 1, compared to an around 1% fall in the broader indices.
