Metal Stocks Outlook For The Week – 15 to 19.01.2018

Metal Stocks Outlook For The Week – 15 to 19.01.2018

             Equity Cash/Futures/Options Segment 

The shares of metal and mining companies are likely to remain positive next week as Oct-Dec earnings are seen robust. The Nifty Metal index ended higher on a weekly basis for the sixth week in a row yesterday, gaining more than 1%. It has outperformed the benchmarks Nifty 50 and Sensex for the fourth consecutive week. The Steel producers are seen posting strong earnings because of price hikes taken during the quarter, backed by record production volumes. Prices of long and flat products have risen by approximately 1,000-1,500 rupees per tn during the quarter. Even though the increase in realisations is likely to be offset by higher iron ore and coking coal costs, overall margins are likely to improve. The earnings of aluminium, copper and zinc producers are also likely to be strong for
the quarter ended December, reflecting the higher prices of base metals on the London Metal Exchange. We expect higher realisations to be partially offset by an increase in input costs, especially coal and carbon products; all aluminium producers will see their costs rise.

Source : Cogencis Information Services Ltd.

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