Metal Stocks Outlook for the week – 08 to 11.03.2016
( www.rupeedesk.in )
Stocks
of major mining and metal companies are seen trading up next week due to the
increase
in domestic steel prices as well as the push in infrastructure by government in
the
Budget for 2016-17 (Apr-Mar).
Domestic
steel prices have been consistently improving after government, in
February,
announced minimum import price on 173 steel products to keep a check on
cheap
foreign imports and provide support to the ailing domestic steel industry.
In
the Budget announced on Monday, government allocated 2.21 trln rupees for
infrastructure,
which is expected to revive the ailing demand in the metal sector.
Further,
government removed the export duty on low-grade iron ore fines and lumps,
which
is likely to help exporters like Vedanta to compete in the international
market.
The
prices have been improving and the metal companies are in an improved state,
but
the implementation of these infrastructure projects would be a crucial factor
for
the
core revival that this sector needs.
However,
a preliminary probe by the US Department of Commerce has found JSW
Steel
and Tata Steel's UK arms guilty of dumping certain cold-rolled steel flat
products
into the country, and this might impact these stocks.