Metal Stocks Outlook for the week – 19 to 23.10.2015 (Seen trading with a negative bias next week)

Metal Stocks Outlook for the week – 19 to 23.10.2015

Seen trading with a negative bias next week

 ( www.rupeedesk.in )

Stocks of major metal companies are seen subdued and trading with a negative bias next week after this week's rally. No major move is expected and some correction is likely in the coming week. There could also be stock specific movement as the Jul-Sep earnings are round the corner. While the general sales trend has been positive, the steep fall in commodity prices has resulted in fall in sales in the metals and oil and gas sectors.

From our universe of coverage, we expect to see a on year reduction of 13.4% in sales turnover for metals. Hindalco is likely to outperform on strong volume growth and better copper price, but still post a 9% YoY decline in EBITDA. Vedanta's earnings would be lower by 43% on year and 23% on quarter, particularly on account of lower zinc and aluminium prices.