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Metal Stocks Outlook for the week - 28.09.2015 to 01.10.2015 Down trend due to falling Global Metal prices

Metal Stocks Outlook for the week - 28.09.2015 to 01.10.2015
Down trend due to falling Global Metal prices

Stocks of major metals and mining companies are likely to witness a downward trend in the upcoming week, due to falling global metal Prices. Global metal prices have declined sharply in the last one year due to oversupply and subdued demand. The CNX metal index fell almost 6% in the last one week to 1,684.80 points. Daily momentum of the index is currently in bearish mode.

The metals and mining sector would not see an immediate impact of a rate cut by the Reserve bank of India at its upcoming policy review on Tuesday. It will take longer time for the companies in the sector to gain the benefits of a possible rate cut. We believe that domestic steel demand will improve, but low regional prices and threat of imports will weigh on domestic steel prices as prices are largely driven by import parity.