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Informist, Friday, Nov. 8, 2024

MUMBAI – Shares of metal companies are expected to rise next week on the back of recent strong earnings for the September quarter by select companies and favourable metal pricing, analysts said. However, these gains might be capped as investors were left disappointed after new stimulus measures by Chinese authorities Friday to boost its economy fell short of expectations. Investors will also wait for more news from the US amid growing anticipation of tariff hikes on imports.  

Investors had waited for more sweeping stimulus measures from the National People's Congress Standing Committee meeting held Friday. While China did announce a debt programme, investors were left wanting for further stimulus announcements to shore up its economy. "Unless there's more to come, China's latest policy announcement is another disappointment for those expecting a major stimulus", a Dow Jones newswires report quoted Mark Williams of Capital Economics as saying. This gains significance especially after Donald Trump, who was elected as US president this week, proposed to impose higher tariffs on imports from China.

"China's domestic market has no juice, and the only way that China can benefit is going to be via export," said Vinit Bolinjkar, head of research at Ventura Securities. "So we have to see how the US tariff barriers impact Chinese people. So does it impact their manufacturing or not? We need to see that," he said. One needs to keep in mind that China has taken several measures to diversify from the mainland to other countries and set up manufacturing there, he said. Further, prices of steel do not have much downside, so that only leaves room for its price to go up, which could be seen as a positive, he said.

The Nifty Metal index closed at 9308.90 points, down nearly 1% Friday. This week, shares of NMDC and Welspun Corp gained nearly 6% each and were the top gainers in this index. On other hand, shares of Hindalco Industries and Hindustan Zinc fell 6% and over 9%, respectively, thereby becoming the best performers.

TOP HEADLINES

* Analyst Concall: Long steel pdt rates up post-Aug, flat steel still dn - SAIL
* Earnings Review: SAIL revenue growth at 17-qtr low, but meets Street view
* Vedanta preferred bidder for critical mineral blocks in Arunachal, Karnataka
* Hind Zinc preferred bidder for 2 mineral blocks in Andhra, Tamil Nadu
* Analyst Concall: Tata Steel sees FY26 capex lower than in previous two years
* Shyam Metalics Jul-Sept consol PAT down 55.5% YoY at INR 2.16 billion
* Analyst Concall: Rising scrap aluminium cost to dampen Novelis EBITDA growth
* Analyst Concall: Demand, lower input cost to aid Jindal Steel in Oct-Mar
* Earnings Review: Tata Steel consol sales up 3% YoY, beat Street's estimate
* Earnings Outlook: Base metal ops to boost Vedanta Sept qtr operating profit
* Govt to exercise green shoe option of up to 0.51% stake in Hind Zinc OFS
* Earnings Review: Jindal Steel Jul-Sept consol PAT falls 38%, revenue dn 8.5%
* Earnings Review: Tata Steel consol sales up 3% YoY, beats Street estimate
* Hindalco arm Novelis posts weak net profit Jul-Sept, but revenue, volume up
* Usha Martin Jul-Sept consol PAT rises marginally on year to INR 1.1 billion
* Godawari Power to set up oriented PVC pipe mfg unit, buy 60% in RG Pigments
* Shyam Metalics Oct stainless steel sales 6,533 tn, down 20% on month
* Govt to sell up to 2.5% in Hind Zinc via OFS; floor price at INR 505/shr
* JSW Steel's Oct consol crude steel output 2.28 mln tn, down 1% on year
* Shyam Metalics commissions blast furnace, sinter plant to expand production
* Cairn Oil & Gas signs MoU with United Nations to reduce methane emissions
* Sanjay Lohiya temporarily assumes duties of NALCO CMD, effective Saturday
* NMDC Oct iron ore sales up 17.2% on year to 4.03 mln tn, production up 3.8%

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 Akul Nishant Akhoury

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