Metal Stocks Outlook
for the week – 25 to 29.07.2016
(Seen in narrow
range; JSW Steel, Vedanta eyed)
Stocks of major metal and mining companies are seen trading
in a narrow range next week, in line
with the trend in the broad market.A technically support for
the Nifty Metal index at 2300
points and resistance at 2500 points.
A 15% upmove is seen if it (Nifty Metal index) breaks 2500
(points) that a 10-15% decline could be
there if the index slips below 2300. However, the overall
structure remains positive.
Investors would be eyeing shares of JSW Steel and Vedanta as
the companies would post their Apr-
Jun earnings on Wednesday and Friday, respectively. JSW
Steel is expected to report a robust
consolidated net profit of 6.69 bln rupees during the
quarter ended June as against a loss of 1.07 bln
rupees in the same period a year ago, according to
estimates. Investors would also be eyeing the final
findings of the anti-dumping and countervailing probe on
various steel products.
Earlier this week, Steel Secretary Aruna Sundararajan said
the government may reconsider extending
minimum import price on steel products if long-term trade
barriers such as anti-dumping duty and
countervailing duty are in place by August. Sundararajan
also said the minimum import price was an
interim measure to stem shipments, adding that measures such
anti-dumping duty, if levied, would
stay for a longer period.
On Feb 5, the government had imposed minimum import price on
173 steel items for six months to
protect the domestic industry from cheap imports from
countries such as China, South Korea, and
Russia.
