GOLDEN RULES FOR TRADING

Metal Stocks Outlook for the week – 25 to 29.05.2015

Metal Stocks Outlook for the week – 25 to 29.05.2015
Seen under pressure; SAIL, Jindal Steel eyed
Stocks of major metal companies are seen under pressure, with no signs of reversal in the upcoming week. No sign of reversal is seen in the next week due to inherent weakness in the metal sector. The analyst expects stocks of Tata Steel to open weak on Monday as it posted poor Jan-Mar earnings on Wednesday. The steelmaker reported a consolidated net loss of 56.74 bln rupees for the quarter ended March, against a profit of 10.36 bln rupees a year ago.


Standalone operations, which comprise the company's Indian business, reported a 58.9% fall in net profit to 8.14 bln rupees. While Europe seems to be more stable, worries are in the domestic business. Factoring in DMF (District Mineral Foundation) contribution, higher costs and lower realisations, we revised down our estimates. The Street would eye stocks of Steel Authority of India and Jindal Steel and Power as the companies are expected to report earnings for the March quarter next week.