Metal Stocks Outlook for the week – 20 to 22.10.2014
( www.rupeedesk.in )
Metal
Stocks are largely seen range bound next week as investors are likely to
remain
shy of taking aggressive positions in a truncated week. Some selling
pressure
is expected to continue as a negative sentiment prevails on the sector.
Investors
will focus on JSW Steel which will detail its earnings on Tuesday. Markets
will be
closed on Thursday and Friday for Diwali. However, there will be a shortperiod
Muhurat
trading on Thursday. Metal Stocks may continue to see some selling
pressure
next week.
JSW
Steel is expected to post a Jul-Sep consolidated net profit of 7.15 bln rupees,
against
a loss of 1.15 bln rupees a year ago, on higher volumes and improved
realisations.
JSW Steel had posted a consolidated loss of 1.15 bln rupees in Jul-Sep
of
2013-14 (Apr-Mar) because of a foreign exchange loss of 8.51 bln rupees. Net
sales
of the company is expected to rise 9% on year to 139.10 bln rupees.
Realisations
are expected to rise around 7% YoY resulting in around 20% YoY
growth
in EBITDA (earnings before interest, depreciation, taxes, and amortisation)/tn
though partially offset by around 4% increase in cost/tn.
