Metal Stocks Outlook for the week –
13 to 17.06.2016
(Seen up next week; Hindalco to lead
gains)
( www.rupeedesk.in )
The shares
of major metal and mining companies are seen trading with a positive bias next week
due to a rise in base metal prices. The trading, however, will be
stockspecific. In the
coming week, shares of Tata Steel Ltd may remain subdued and trade in the range of
325-348 rupees. Yesterday, the stock ended down 2% on reports that the company is
exploring reversal of a decision to sell its UK business due to pressure from the
referendum-bound UK government.
The UK
government is said to believe that Tata's exit will reflect badly on the
country's business
environment. Sale of the UK business is essential for Tata Steel to trim losses and cut
debt. Hindalco Industries remains a top pick, as the company's primary aluminium
operations are recording a strong performance despite depressed prices on the London
Metal Exchange, while copper remains stable and profitable.
The Indian
steel sector has been under pressure due to rising imports from China, Japan and Korea. Recently,
however, the sector received a boost in the form of minimum import
price, which seeks to restrict cheap imports, especially from China and members of
the Commonwealth of Independent States.
