Metal
Stocks Outlook for the week – 29.12.2014 to 02.01.2015
( www.rupeedesk.in )
Stocks of metal companies are expected to move in a narrow range next
week, with investor's eying official December manufacturing data from China, the world's
largest consumer and producer of metals.
An HSBC poll had shown earlier that China's purchasing managers index
had fallen to 49.5 in December from November's reading of 50, its first contraction in seven
months. A confirmation in this regard could severely dampen the sentiment around metals.
In the domestic scenario, the steel ministry is likely to urge the
finance ministry to raise import duty on alloy and non-alloy steel products to 10% from 7.5% currently,
thus benefitting steel producers in the country which now have to compete with lower-priced
Chinese imports. The ministry would also push for scrapping of 2.5% import duty on coking
coal and iron ore, the two main ingredients for production of steel.
However, do not see any immediate reason to cheer as they believe that
till a concrete development occurs in this regard the scenario would remain unchanged.
We are expects Hindalco Industries, Tata Steel, and JSW Steel to trade rangebound
next week.
