Metal Stocks Outlook for the week – 21 to 25.11.2016
Stocks of major metal and mining companies are seen rebounding next week after a sell-off in the last few trading sessions. The Nifty Metal index yesterday underperformed the broader market on fears that the dollar's rise against the euro as well as the rupee would make it tougher for domestic metal producers to maintain their profit margin and exports. With the gains in dollar, the import cost of metallurgical coke key raw material for steelmakers--would shoot up. Indian metal exports to Europe are likely to take a hit due to a weak euro against the dollar. The US dollar rose after Federal Reserve Chair Janet Yellen said the US economy is strong enough to withstand a near-term interest rate hike.
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Stocks of major metal and mining companies are seen rebounding next week after a sell-off in the last few trading sessions. The Nifty Metal index yesterday underperformed the broader market on fears that the dollar's rise against the euro as well as the rupee would make it tougher for domestic metal producers to maintain their profit margin and exports. With the gains in dollar, the import cost of metallurgical coke key raw material for steelmakers--would shoot up. Indian metal exports to Europe are likely to take a hit due to a weak euro against the dollar. The US dollar rose after Federal Reserve Chair Janet Yellen said the US economy is strong enough to withstand a near-term interest rate hike.
Free Intraday Tips : Join Our Whatsapp No : 9841986753
