Metal Stocks Outlook for the week – 21 to 25.09.2015
(Seen in range; no positive triggers
next week)
( www.rupeedesk.in )
Stocks
of major metals and mining companies are seen in range next week, with no
positive short-term triggers. Recent government policies such as imposition of
20% provisional safeguard duty on hot rolled flat steel products may not have
major impact on the companies' financials.
Global
steel demand is likely to remain weak and this would put prices under pressure.
Domestic HRC (hot rolled coils) prices will increase gradually in 2HFY16
(Oct-Mar) aided by safeguard duty and better seasonal demand. Globally, metal
prices have plummeted significantly over a year now, with the CNX metal metals
index declining 38% on year to 1,789.3 points.
The
notification of quantum of levy of the non-profit body – District Mineral Foundation
-- will have an impact on the financials of the companies in the September
quarter. The Centre has approved 10-30% levy on royalty that would go into the
District Mineral Foundation, which is meant to provide for the welfare of areas
and people affected by mining operations
