Metal Stocks Outlook for the week – 15 to 19.12.2014
( www.rupeedesk.in )
Stocks of metal companies are expected to trade with a
positive bias next week as the negativity around the sector has already been factored in
this week. This week, the CNX Metal Index fell 6.5% led by a 10.7% fall in Sesa Sterlite's
shares, a 12.67% fall in Tata Steel's share price, and a 8.14% fall in Jindal Steel and Power.
According to the data, industrial production for October
contracted by 4.2% as against a contraction of 1.2% a year ago. Markets had expected
industrial growth at 2.5% in October. However, the consumer price indexed inflation for November
was in line with Street's estimate, and stood at 4.38% as against 5.52% a year ago.
JSW Steel may see some pressure due to a penalty of
$126,000 imposed on the company's US subsidiary by the US labour department due to safety norm
violations. However, believe that the amount is insignificant for JSW Steel.
Long-term bullish outlook on Steel Authority Of India as
the company is seen as the keybeneficiary of any positive movement in the Indian construction space.
The company is predominantly in the flat products space that is mainly
used in construction.
