Metal Stocks Outlook for the week – 01 to 05.02.2016
Seen
trading with negative bias next week
( www.rupeedesk.in )
Stocks
of metals and mining companies are seen trading with a negative bias next
week
due to weak Oct-Dec earnings and as the government has said that no decision
has
been taken regarding the minimum import price on certain steel products.
Although
the steel ministry was reportedly working with banks to resolve financial
issues
in the sector, absence of any decision regarding the minimum import price is
likely
to hurt the domestic steel producers who have been adversely hit by cheaper
imports
from China, Japan and South Korea.
The
steel companies are all expected to post weak quarterly earnings as there has
been
a
sharp fall in steel prices and cheap imports have not been curbed despite the
implementation
of safeguard duty by the government. There is no hope for a revival
as
long as fundamental problems of the sector persist. Vedanta Ltd's consolidated
net
profit
came down 99% on year to 179.1 mln in Oct-Dec, whereas JSW Steel has
posted a consolidated net loss of 9.2 bln rupees during the same period.