Metal Stocks Outlook
for the week – 10 to 14.11.2014
( www.rupeedesk.in )
Stocks of metal companies are
expected to trade with a positive bias next week believe that the sentiment towards the sector
is improving, with JSW Steel seen gaining fundamentally the most as global iron
ore prices fall to 5-year lows.
JSW Steel is set to import around
900,000 tn of iron ore per month, and thus is set to gain the most by the falling global
iron ore prices.
Domestic iron ore pricing has
remained firm despite the weakening of prices in global trade. We expect NMDC's pricing
(mainly lumps) to come under pressure as mines resume operations in Jharkhand and
Odisha. Company's ore is now more expensive to steel mills located on the Indian
coast.
However, believes that while NMDC's
dominant position in the domestic market will continue to aid the
company, its current stock price has discounted all the positives
