Metal Stocks Outlook for the week – 29.02.2016 to 04.03.2016
(Seen
with a positive bias; FY17 Budget eyed)
( www.rupeedesk.in )
Shares
of major mining and metal companies are seen trading with
a
positive bias next week as the government is expected to make
announcements
regarding increase in infrastructure spending that will
boost
domestic demand.
The
government will announce the Budget 2016-17 in Parliament on
Monday.
Also, analysts expect domestic steel prices to pick up in the near
term,
as they are at a discount to global prices. Ratings agency ICRA said
that
it expects the domestic steelmakers' product prices to recover in the
next
few months because of the gap between minimum import price and
current
import offers.
However,
the agency acknowledged that magnitude of price increase by
steel
players is not expected to be sharp as demand is still tepid and
supplies
remain ample with still significant scope for upside due to idle
capacities.
If there are announcements in Budget regarding infrastructure,
the
sector would finally able to hope for a revival as the demand is
currently not at desired levels