Metal Stocks Outlook for the week – 15 to 19.02.2016
(Seen
down tracking broad market next week)
( www.rupeedesk.in )
With
overall market sentiment seen weak, shares of major metals and
mining
companies are likely to trade with a negative bias next week
despite
the government announcing minimum import price on 173 steel
products.
Further,
the impact of the floor price on steel products is expected to be
gradual
as the companies are likely to increase their prices over the next
three
months. They (domestic steel producers) won't be increasing the
prices
immediately and the overall revival is still not seen for the sector.
The
imported steel inventory is already in the market as the minimum
import
price is not applicable on letter of credits already issued and
therefore
the market will be supplied with imports till April.
The
domestic steel demand needs to grow and it is one of the factors that
can
cause revival in the sector.
