Metal
Stocks Outlook for the week – 17 to 21.11.2014
( www.rupeedesk.in )
Metal stocks are expected
to trade with a positive bias next week, in line with the
broad market, as cues
from Jul-Sep corporate earnings have been factored in.
Hindalco Industries'
results on Thursday showed operational improvements,
especially in the copper
segment, although bottomline declined due to a onetime loss.
Domestic uncertainty is
still there and believes clarity will emerge post the coal
block e-auction. We
expect the stock to remain range bound in the near term,
even though the company
is very well-positioned on upstream and downstream,
although in the near
term, a lack of clarity on coal sourcing, potential equity
issuance, and sluggish
LME aluminium prices means stock returns are likely back-ended.
Tata Steel's earnings
were quite the opposite of Hindalco's, with Jul-Sep
operational performance
worsening on a year-on-year basis due to its Southeast
Asia operations. The
company's net profit, however, rose 37% on-year due to a
one-time gain.
Uncertainty remains on domestic mining scenario and fall in
global steel prices has
been a worry. Believe, majority of that is there in prices though.
