Metal Stocks Outlook for the week – 04 TO 08.07.2016
(Seen falling next week on profit booking)
( www.rupeedesk.in )
The stocks of major metals and mining companies may see profit
booking next week after gaining in the current week following a surge in prices of metals,
particularly copper and aluminium. In the near term, base metal prices may see some volatility after the recent
decision of Britain to exit from the European Union.
The changes in investor sentiment as well as weak growth in the
euro zone may dampen non ferrous metal prices. However, in our view, Brexit is unlikely to have a
significant impact on India's nonferrous metal sector, since the region's share
in global base metal consumption has been limited. On long-term demand of base
metals in India remains positive. The positive is driven by investments in infrastructure projects
for the power transmission and distribution sector, urban housing, and smart city programmes.
