Metal
Stocks Outlook for the week – 05 to 09.01.2015
( www.rupeedesk.in )
Stocks of metal companies are seen trading with a positive bias next
week given the upbeat sentiment in the market. Metal stocks have underperformed the
benchmark indices in recent months due to regulatory woes, but are now likely to move up if the
equity markets remain firm.
The sector will also eye developments on the mining ordinance front.
Media reports earlier this week suggested that the government may take up mining ordinance soon. On the global front, China's inflation and
trade data for December will be watched. Overall flows in the sector are positive. If market goes
up, metal stocks will outperform.
Among specific stocks, we are positive on stocks of JSW Steel, Steel Authority
of India, Tata Steel and JSW Steel. We think the corrective phase of metal stocks is
over. There is possibility of consolidation now before they resume their medium term uptrend.
