GOLDEN RULES FOR TRADING

Metal Stocks Outlook for the week – 21 to 25.09.2015 (Seen in range; no positive triggers next week)

Metal Stocks Outlook for the week – 21 to 25.09.2015
(Seen in range; no positive triggers next week)

Stocks of major metals and mining companies are seen in range next week, with no positive short-term triggers. Recent government policies such as imposition of 20% provisional safeguard duty on hot rolled flat steel products may not have major impact on the companies' financials.

Global steel demand is likely to remain weak and this would put prices under pressure. Domestic HRC (hot rolled coils) prices will increase gradually in 2HFY16 (Oct-Mar) aided by safeguard duty and better seasonal demand. Globally, metal prices have plummeted significantly over a year now, with the CNX metal metals index declining 38% on year to 1,789.3 points.

The notification of quantum of levy of the non-profit body – District Mineral Foundation -- will have an impact on the financials of the companies in the September quarter. The Centre has approved 10-30% levy on royalty that would go into the District Mineral Foundation, which is meant to provide for the welfare of areas and people affected by mining operations