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Informist, Friday, Oct. 11, 2024

MUMBAI – The outcome of a highly-anticipated briefing by China's finance ministry on Saturday will provide clues to the direction that metal stocks will take next week, analysts said. The ministry is expected to strengthen its fiscal easing stance and show an increased willingness for the central government to take on more debt at its Saturday meeting, Goldman Sachs said in a note, as reported by Dow Jones. Favourable announcements at the press conference aimed at boosting the Chinese economy may be positive for metal stocks, analysts said.

However, it is too soon to know if Indian metal companies will really benefit from the fiscal stimulus in China, they said. Chinese policymakers are expected to pledge more fiscal support for this year and the next, with a heavier focus on boosting consumption among other goals, Goldman Sachs said.

"Fundamentals of things (in China) need to change, not just news or speculation" that this is beneficial for the sector, a research analyst at a domestic brokerage firm said. Now, we will look at consumption data from China to understand the situation, and if not in line with market expectations, there could be a correction of up to 5% in the next one and half months, the research analyst said.

Several metal stocks, such as Hindalco Industries, Tata Steel, and JSW Steel, gained Friday in anticipation of positive developments at the conference Saturday, according to analysts. For the September quarter, steel companies are expected to post subdued earnings growth and contraction in margins as compared to the previous quarter, the analyst said.

On Friday, the Nifty Metal index closed nearly 1% higher, up for the third day in a row. However, the index fell nearly 2% this week, and was one of the worst-hit sectoral indices. Earlier this week, investors were left disappointed by lack of fresh stimulus measures at another crucial press conference in China.

TOP HEADLINES

* JSW Steel in pact with Carbon Clean, BHP to deploy carbon capture technology
* NBCC India gets INR 1.98-bln order from SAIL to build rooftop solar system
* JSW Steel Jul-Sept crude steel output up 7% YoY; India ops post record high
* Vedanta board meeting to consider dividend cancelled
* Vedanta gets order from customs office to pay penalty, fine of INR 1 bln
* Shyam Metalics Sept stainless steel sales up 90% on year at 8,175 tn
* Vedanta Resources arm redeems guaranteed senior bonds worth $1 bln
* Hind Copper resumes ops at Surda mine; to invest INR 500 mln in FY25
* Tata Steel Jul-Sept crude steel output, deliveries rise 5-6% YoY
* Govt extends CVD on copper wire rod imports from 4 nations till Jul 7
* JSW Steel arm commissions 4.5-mtpa blast furnace in Karnataka
* JSW Steel step-down arm to merge with subsidiary JSW Steel Coated Products
* Study group sees global lead market in surplus of 63,000 tn in 2024

Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:

End

Reported by Alina Geogy

Edited by Ashish Shirke

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