Metal Stocks Outlook for the week – 03 to 07.08.2015
Range
bound with a negative bias next week
( www.rupeedesk.in )
Stocks
of major metal and mining companies are seen trading in a range with a negative
bias next week. Sector's outlook would continue to remain negative once again
in the next week due to falling commodity prices. Dwindling commodity prices
globally have taken a toll on Apr-Jun earnings of most of the metal and mining
companies.
Metal
stocks may not necessarily recover despite news of the possibility of a further
hike in the import duty on select steel products. A double digit import duty or
a 15% import duty will be able to protect the steel industry from imports from
China, Korea and Russia till Q4 (the fourth quarter of the financial year).
Tata
Steel Ltd and JSW Steel Ltd would gain the most if the import duty is hiked to
15%. Currently, the government levies 7.5% customs duty on long products and
10% on flat steel products. The Street would also eye the Reserve Bank of India's
monetary policy on Tuesday. A repo rate cut may lead to banks cutting their
lending rates, helping the already-stressed metals and mining sector.
