Metal Stocks Outlook for the week – 28.12.2015 to 01.01.2016
Largely
seen consolidating next week
( www.rupeedesk.in )
Stocks
of major metal producers and mining companies are seen consolidating in the
upcoming
week unless a positive sectoral trigger--expected for some time now--
pushes
them higher. News of imposition of minimum import price on steel products
may
cause steel stocks to rally. The commerce ministry is likely to formulise a
minimum
import price on steel products, a move that aims to curb steel shipment
coming
into the country. Global commodity prices are also seen firming up, mainly
due
to currency fluctuations. Fundamentally, nothing has changed for (global)
commodity
prices. Metal prices have been regularly hitting fresh lows, due to supply
glut
and the largest producer and consumer of metals--China--exporting to many
countries.
Tata Steel would be the top pick among metals and mining stocks in the
week
ahead.