Metal Stocks Outlook for the Week – 09 to 13.02.2015
( www.rupeedesk.in )
We
see prices of metal stocks being range bound next week, given the lack of
triggers for international
metal prices and muted results of most domestic players. Sentiment remains negative
around steel counters, as demand and pricing conditions remain unfavourable.
Tata Steel
reported a muted set of numbers on Friday. Pressure from cheap imports, weak
realisations
and
poor demand, mainly in India and South East Asia operations, exacerbated by
iron ore sourcing
issues, dragged Tata Steel's bottom line down 69% year-on-year to 1.57 bln
rupees. Earlier
in the week, Jindal Steel and Power posted Oct-Dec consolidated loss of 16.75
bln rupees due to a 30.89 bln rupee payment to the government, low steel
demand, continued suspension of iron ore supplies from its major supplier and
non-availability of coal for its 4X600 MW plant at Tamnar in Chhattisgarh.
