Metal Stocks Outlook for the week – 25 to 29.05.2015
Seen
under pressure; SAIL, Jindal Steel eyed
( www.rupeedesk.in )
Stocks
of major metal companies are seen under pressure, with no signs of reversal in
the upcoming week. No sign of reversal is seen in the next week due to inherent
weakness in the metal sector. The analyst expects stocks of Tata Steel to open
weak on Monday as it posted poor Jan-Mar earnings on Wednesday. The steelmaker
reported a consolidated net loss of 56.74 bln rupees for the quarter ended
March, against a profit of 10.36 bln rupees a year ago.
Standalone
operations, which comprise the company's Indian business, reported a 58.9% fall
in net profit to 8.14 bln rupees. While Europe seems to be more stable, worries
are in the domestic business. Factoring in DMF (District Mineral Foundation)
contribution, higher costs and lower realisations, we revised down our
estimates. The Street would eye stocks of Steel Authority of India and Jindal Steel
and Power as the companies are expected to report earnings for the March
quarter next week.
