Metal
Stocks Outlook for the week – 02 to 06.05.2016
Seen up next week; Tata Steel in
focus
( www.rupeedesk.in )
Stocks of major metal and mining
companies are seen trading up next week due to improved outlook following
reports that the government is considering a comprehensive package for the
sector that has been struggling for more than a year. According to reports,
Minister of State for Steel and Mines Vishnu Deo Sai said that even though the
government is not devising a bailout plan for the sector which has been
struggling for more than a year, it is considering working out a comprehensive package
for the sector.
Traders would continue to eye stocks
of Tata Steel next week as the company's UK operations' Chief
Executive Officer Bimalendra Jha said
on Thursday that the company cannot "continue to bleed" and
is looking to get out of the country
as soon as possible. Jha said that the company needs to resolve
first the pension liability issue
with some help from the government as there will be no buyer for its
operations in UK till this problem is
resolved.
According to media reports, the UK
government is working with the pension scheme trustees at Tata
Steel to reduce the impact on any
buyer, and also considering the possibility to separate the scheme
from the business. Another company
that would be under watch is mining major Vedanta which reported its Jan-Mar
earnings on Thursday. Despite a loss of 111.81 bln at consolidated level, the
company reported a net profit of 9.5
bln rupees before exceptional item. The earnings were dragged
down mostly on account of one-time
impairment charges of 123.12 bln rupees during the quarter
that mainly comprised the
100.74-bln-rupee impairment of goodwill created on acquisition of Cairn
India.