Metal Stocks Outlook
for the week – 03 to 07.10.2016
Correction in major
stocks likely to continue
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Stocks of major metal and mining companies may continue to
see correction in the coming week.
Stocks of major metal companies fell 1.5%-7.7% this week. In
the last week, the index had risen
3.7%. It has risen 32.3% since April. Stocks would also
track the Reserve Bank of India's monetary
policy and the geo-political situations. While concerns of
border tension with Pakistan are still on
investors' minds, it is expected to calm next week. The RBI
will detail its monetary policy on Tuesday at 1430 IST. Market participants would be eyeing any
development related to imposition of antidumping duty on certain steel products.
The government may further prune the list of steel products
under minimum import price and instead
levy anti-dumping duty on them, Steel Secretary Aruna Sharma
had said two weeks back. The
government had imposed minimum import price on 173 steel
products in February for six months. On Aug 4, the government removed minimum import price for 107
specific items, and simultaneously imposed anti-dumping duty on broader categories of
hot-rolled and cold-rolled products. It is difficult to give stock-specific estimate. If the (metal) stocks consolidate
then it is good. But we have to wait and see how the stocks move.
