Metal Stocks Outlook For The Week – 25 to 29.09.2017

Metal Stocks Outlook For The Week – 25 to 29.09.2017

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Metal Stocks Outlook For The Week – 25 to 29.09.2017 )

Stocks of metal and mining companies are likely to continue their weak form next week, as stocks remain subdued in the run up to the expiry of the September derivatives series. Standard and Poor's downgrade of China's rating may also weigh on these stocks as China is the largest consumer of
metals, and concerns about consumption in the world's largest economy can weigh on base metal
prices. This week, stocks of most metal and mining companies slipped 3-8% as metal companies came under profit booking on China's downgrade and as geopolitical tensions around the Korean peninsula resurfaced. Sustained geopolitical tension, and the profit booking ahead of the expiry of
the current derivatives series may lead to the Nifty Metal index underperforming for the third week in a row next week. The Nifty Metal index yesterday ended at its lowest level in over three weeks. Among individual stocks, the Tata Steel will continue to remain in focus. This week, the steel maker announced a 50:50 joint venture for its European operations with thyssenkrupp AG.

Source : Cogencis Information Services Ltd.