Metal Stocks Outlook for the week – 05 to 09.Oct.2015
(Selling
pressure to continue next week)
Selling
pressure on shares of major metals and mining companies is likely to continue next
week on concerns over falling global commodity prices.
We
do not see any near-term reversal in the CNX metal index, which has been underperforming
in the past one year. However, we expect a bounce back post consecutive
sessions of downward correction in the current week.
There
could be a rally if steel companies raise product prices. If there is no hike,
they (stocks of metal and mining companies) will start falling. The market is
anticipating a hike in select steel product prices after the government imposed
a 20% provisional safeguard duty on hot-rolled coils in a bid to curb cheap
imports from countries like China and Russia.
