Metal Stocks Outlook for the week - 28.09.2015 to 01.10.2015
Down
trend due to falling Global Metal prices
( www.rupeedesk.in )
Stocks
of major metals and mining companies are likely to witness a downward trend in the
upcoming week, due to falling global metal Prices. Global metal prices have
declined sharply in the last one year due to oversupply and subdued demand. The
CNX metal index fell almost 6% in the last one week to 1,684.80 points. Daily
momentum of the index is currently in bearish mode.
The
metals and mining sector would not see an immediate impact of a rate cut by the
Reserve bank of India at its upcoming policy review on Tuesday. It will take
longer time for the companies in the sector to gain the benefits of a possible
rate cut. We believe that domestic steel demand will improve, but low regional
prices and threat of imports will weigh on domestic steel prices as prices are
largely driven by import parity.
