Metal Stocks Outlook for the week – 23 to 27.03.2015
( www.rupeedesk.in )
Stocks
of metal companies are seen trading negative in the upcoming week, in line with
global cues. Steel prices remain weak globally, although significant fall
prices isn't seen immediately.
Indian
steel sector has been underperforming for the last one year and the subdued
performance is expected to continue.
Performance
of metal stocks, especially Hindalco Ltd and Jindal Steel and Power Ltd, would
depend
on government's reaction on the re-examination of their bids for coal blocks.
The
government
is currently examining the bidding for eight coal blocks--three operational and
five ready-to-mine--and had held back their award to the winning companies.
However,
do not see any immediate impact of the passing of the Mines and Minerals
(Development
and Regulation) Bill by the Rajya Sabha today. The shares of Hindalco, Tata
Steel Ltd and Jindal Steel and Power are likely to underperform next week. We
see JSW Steel Ltd gaining in the long term. Shares of Jindal Steel and Power
will continue to be negative.
