Metal Stocks Outlook
Aluminium players seen up, but steel cos seen weak
This story was originally published at 20:29 IST on 22 November 2024
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MUMBAI – Shares of aluminium players are seen rising next week amid a positive outlook on product prices after China said it will remove the export tax rebate on the commodity. The removal of the tax rebate would lead to a fall in the supply of aluminium from China, thereby improving product prices, analysts said.
At the same, the outlook for steel product prices is still weak. "Better prices for steel companies depend on China, which is facing its own problems, or the imposition of anti-dumping duty by India, which at this point seems unlikely," Asutosh Mishra, head of institutional equities at Ashika Stock Broking, said.
Other analysts also pointed to soft earnings for major metal companies owing to weak prices. "A strong performance from Indian operations due to better domestic demand should aid volumes in 2H (Oct-Mar), but weak NSR (net sales realisation) would keep growth under check," Motilal Oswal Financial Services said in a report Friday.
The Nifty Metal index saw marginal gains this week after falling for two straight weeks. It closed at 8846.20 points. Among its constituents, major aluminium players such as National Aluminium Co. rose nearly 17% this week, Hindalco Industries rose 4%, and Vedanta rose 2.8%.
Shares of Adani Enterprises declined over 20% this week after Chairman Gautam Adani was indicted in the US Wednesday for, among other charges, bribery in India to win projects. The stock closed at INR 2,228.
TOP HEADLINES
* PRESS: Vedanta Resources delay dollar bond issue after Adani indictment
* Tata Steel partially replaces coal with biochar at Jamshedpur plant
* S&P Global Ratings places Vedanta Resources' ratings on CreditWatch positive
* Fitch affirms 'B-' rating to Vedanta Resources with stable outlook
* JSW Steel's Italian subsidiary signs agreement with Metinvest Adria SpA
* JSW Steel declared preferred bidder for Codli mineral block in Goa
* Godawari Power to buy 51% in Jammu Pigments, not to buy stake in RG Pigments
* Hindustan Zinc preferred bidder for gold mine block in Rajasthan
* NCLT approves Orissa Metaliks' resolution plan for Metenere
* Ratnamani Metals PAT falls 39.5% on year in Jul-Sept, sales down 16.2%
* Awaiting outcome of auction for Codli mineral block in Goa, says JSW Steel
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:
| Company | Price | Week-on-week change in % | Resistance | Support |
| HINDALCO INDUSTRIES | 652.10 | 4.00 | 662.20 | 642.40 |
| HINDUSTAN COPPER | 263.40 | 0.30 | 269.10 | 257.70 |
| HINDUSTAN ZINC | 489.25 | (-)1.20 | 495.30 | 482.20 |
| JINDAL STEEL & POWER | 878.95 | 0.20 | 899.30 | 848.30 |
| JSW STEEL | 977.35 | 4.10 | 1008.20 | 923.70 |
| JINDAL STAINLESS | 671.55 | (-)3.30 | 689.50 | 646.60 |
| NATIONAL ALUMINIUM CO. | 256.85 | 16.80 | 265.40 | 245.10 |
| NMDC | 220.77 | 0.90 | 224.50 | 216.50 |
| STEEL AUTHORITY OF INDIA | 112.83 | 0.90 | 115.50 | 109.10 |
| TATA STEEL | 142.78 | 3.50 | 145.40 | 138.30 |
| VEDANTA | 445.35 | 2.80 | 451.30 | 438.40 |
| NIFTY METAL | 8846.20 | 0.20 | 9006.00 | 8578.40 |
| NIFTY 50 | 23907.25 | 1.60 | 24337.90 | 23143.70 |
| BSE SENSEX | 79117.11 | 2.00 | 80512.20 | 76529.20 |
End
Reported by Anshul Choudhary
Edited by Rajeev Pai
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