Metal Stocks Outlook for the week – 21 to 24.12.2015
(Up next week on protective policy
moves)
( www.rupeedesk.in )
Stocks
of major metal producers and mining companies are seen trading
higher
next week on the possibility of the government announcing
minimum
import price on steel products and plan to ban sale and
distribution
of steel products that do not meet Bureau of Indian Standards'
approval.
This
non-tariff barrier is much better and a long-term solution for
checking
cheap imports and that is the reason they came out with this
quality
control order.
The
ban will assure the metal producers that prices are unlikely to fall
further
and will also give them a confidence to go ahead with their
business
and continue with their investment.
Stocks
of Hindalco are likely to remain flat and those of Jindal Steel
Power
may trade in a range. We continue to remain cautious on the metal
sector,
despite the domestic demand data appearing positive.